FPH Reports Record Full Year Result

News Release
STOCK EXCHANGE LISTINGS: NEW ZEALAND (FPH), AUSTRALIA (FPH)

Fisher & Paykel Healthcare Reports Record Full Year Result, Achieves Revenue Milestone
of NZ$1 Billion

Auckland, New Zealand, 27 May 2019 - Fisher & Paykel Healthcare Corporation Limited today
announced a record result for the 2019 financial year, with net profit after tax up 10% to NZ$209.2
million. The company also reached the milestone of achieving over NZ$1 billion in revenue, with
operating revenue up 9% to a record NZ$1.07 billion.

“Our record results were driven by our innovative products, the dedication of our teams around the
world, a culture of continuous improvement and the value we offer for clinicians and patients,” said
Managing Director and CEO, Lewis Gradon. “It is now 50 years since the inception of our business
and our results this year are a reflection of our long term and consistent growth strategy.”

Operating revenue for the Hospital product group, which includes products used in respiratory,
acute and surgical care, increased 12% to a record NZ$642.3 million, or 11% growth in constant
currency. Products in the Hospital group made up 60% of the company’s operating revenue.

“Our Optiflow nasal high flow therapy remains a key growth driver for our hospital business and
over the past year we estimate that approximately 3 million patients were treated with our Optiflow
products. This was reflected in robust constant currency revenue growth of 20% from new
applications consumables which now account for 62% of our Hospital consumables revenue.”

Operating revenue for the Homecare product group, which includes products used in the treatment
of obstructive sleep apnea (OSA) and respiratory support in the home, rose 6% to NZ$421.5
million, or 4% growth in constant currency. A hiatus in OSA mask launches was offset by a strong
contribution from the successfully completed roll out of the company’s new SleepStyle OSA device
to all major markets, and from home respiratory support.

“We were pleased to launch our new F&P Vitera
TM
OSA full face mask recently. This mask puts
patient comfort first and incorporates our new VentiCool
TM
technology, the next generation of mask
seal and other innovative design features. The initial response from our customers in Australasia,
Canada and Europe has been positive and we look forward to releasing Vitera in more countries
during the course of this year.”

Gross margin increased by 56 basis points to 66.9%, or a 58 basis points increase in constant
currency, compared to the previous year, primarily due to favourable product mix.

“Research and development remains a fundamental part of our success story, with a cumulative
$750+ million invested in R&D since 2001. Last year, we invested $100 million (equal to 9% of our
revenue) into R&D and we have a full pipeline of new products in development.”

Dividend and Suspension of Dividend Reinvestment Plan
The final dividend of 13.5 cents per share, carrying full New Zealand imputation credit, will be paid
on 5 July 2019. Given the company’s strong performance over the last five years and reduction of
debt to below the target gearing range, the Board has determined to suspend the dividend
reinvestment plan (DRP). As a result, shareholders who have previously elected to participate in
the DRP will receive dividends in cash for the dividend scheduled to be paid on 5 July 2019.

Outlook for FY2020
“Achieving $1 billion in revenue is a milestone for our company, however, we are not sitting still.
We will continue to build on our strengths and continuously improve and expand our portfolio of
valued solutions for healthcare providers and patients.

“We expect capital expenditure for the 2020 financial year to be approximately NZ$150 million as
we increase capacity for both existing and new products and complete construction of the fourth
building on our Auckland campus.

At current exchange rates we expect full year operating revenue for the 2020 financial year to be
approximately NZ$1.15 billion and net profit after tax to be approximately NZ$240 million to
NZ$250 million. Recent changes introduced by the New Zealand Taxation (Research and
Development Tax Credits) Act 2019, a significant reduction in patent litigation costs and forecast
currency benefits have been factored into our earnings guidance for 2020.

“We are looking forward to the future and what it holds for our company and are well positioned to
meet growing demand for our products and systems and continuing to deliver better healthcare
solutions,” concluded Mr Gradon.

Overview of key results for the 2019 financial year
 10% growth in net profit after tax to a record NZ$209.2 million.
 8% increase in final dividend to 13.5 cps (2018: 12.5 cps).
 9% growth in operating revenue to a record NZ$1.07 billion, 8% growth in constant currency.
 12% growth in Hospital operating revenue, 11% growth in constant currency.
 Revenue growth of 20% in constant currency for consumables used in non-invasive ventilation,
Optiflow nasal high flow therapy and surgical applications, accounting for 62% of Hospital
consumables revenue.
 6% growth in Homecare operating revenue, 4% growth in constant currency.
 Investment in R&D was 9% of revenue or NZ$100.4 million.
 86% of the company’s revenue was generated from recurring items, such as consumables and
accessories.

About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of products and
systems for use in respiratory care, acute care, surgery and the treatment of obstructive sleep
apnea. The company’s products are sold in over 120 countries worldwide. For more information
about the company, visit our website www.fphcare.com.

Ends

Media & Investor Contacts:
Marcus Driller
VP Corporate
marcus.driller@fphcare.co.nz
+64 (0) 27 578 9663
Hayden Brown
Investor Relations Manager
hayden.brown@fphcare.co.nz
+64 (0) 27 807 8073


Accompanying Documents
Please find attached to this news release the following additional documents:
 Results in Brief
 Annual Report 2019
 Investor Presentation 2019
 Annual Review 2019
 NZX Results Announcement
 NZX Distribution Notice

The 2019 Annual Report is also available online at https://annualreport.fphcare.com/.

Constant Currency Information
Constant currency information included within this news release is non-conforming financial
information, as defined by the NZ Financial Markets Authority, and has been provided to assist

users of financial information to better understand and track the company’s comparative financial
performance without the impacts of spot foreign currency fluctuations and hedging results and has
been prepared on a consistent basis each year. A constant currency analysis is included on page
36 of the company’s Annual Report 2019 and the company’s constant currency income statement
framework can be found on the company’s website at www.fphcare.com/ccis.

Full Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to review the results and to discuss
the outlook for the 2020 financial year. The conference call is scheduled to begin at 10:00am
NZST, 8:00am AEST (6:00pm USEDT) and will be broadcast simultaneously over the internet.

To listen to the webcast, access the company’s website at www.fphcare.com/investor. Please
allow extra time prior to the webcast to visit the site and download the streaming media software if
required. An online archive of the event will be available approximately two hours after the webcast
and will remain on the site for two weeks.

To attend the conference call, participants will need to dial in to one of the numbers below 5 to 10
minutes prior to the scheduled call time and identify yourself to the operator. When prompted,
please quote the conference code of: 7242707.

New Zealand Toll Free 0800 423 970 US/Canada Toll Free 800 458 4121
Australia Toll Free 1800 573 793 Hong Kong Toll Free 800 961 105
United Kingdom Toll Free 0800 358 6377 International +64 9 913 3622

---

Results in Brief



Year Ended Year Ended
% Change
31-Mar-18 31-Mar-19
NZ$M NZ$M
(except as otherwise
stated)
(except as otherwise
stated)
FINANCIAL PERFORMANCE



Total operating revenue 980.8 1,070.4 +9%
Cost of sales (330.4) (354.6) +7%
Gross profit 650.4 715.8 +10%
Gross margin 66.3% 66.9% +56bps
Other income 5.0 5.0 -
Selling, general and administrative expenses (290.9) (327.8) +13%
Research and development expenses (94.7) (100.4) +6%
R&D percentage of operating revenue 9.7% 9.4% -28bps
Total operating expenses (385.6) (428.2) +11%
Operating profit before financing costs 269.8 292.6 +8%
Operating margin 27.5% 27.3% -17bps
Net financing (expense) (2.0) (1.4) -30%
Profit before tax 267.8 291.2 +9%
Tax expense (77.6) (82.0) +6%
Profit after tax 190.2 209.2 +10%



Revenue by Region:



North America 458.5 501.5 +9%
Europe 297.6 314.6 +6%
Asia Pacific 181.0 208.1 +15%
Other 43.7 46.2 +6%
Total 980.8 1,070.4 +9%



Revenue by Product Group:



Hospital 572.1 642.3 +12%
Homecare 398.1 421.4 +6%
Core products sub-total 970.2 1,063.7 +10%
Distributed and other 10.6 6.7 -37%
Total 980.8 1,070.4 +9%

FINANCIAL POSITION



Tangible assets 940.1 1,106.3 +18%
Intangible assets 85.1 100.4 +18%
Total assets 1,025.1 1,206.7 +18%
Total liabilities (263.7) (293.5) +11%
Shareholders’ equity 761.4 913.2 +20%
Gearing -7.3% -6.7% -61bps
Net tangible asset backing (cents per share) 121 146 +21%

Results in Brief (continued)



Year Ended Year Ended
% Change
31-Mar-18 31-Mar-19
NZ$M NZ$M
(except as otherwise
stated)
(except as otherwise
stated)



CASH FLOWS



Net cash flow from operating activities 247.8 253.3

Net cash flow (used in) investing activities (198.5) (125.7)
Net cash flow (used in) financing activities (79.1) (113.1)




SHARES OUTSTANDING

Weighted average basic shares outstanding 570,023,436 572,780,545

Weighted average diluted shares outstanding 576,449,648 578,050,600

Basic shares outstanding at year end 571,230,264 573,708,739




DIVIDENDS AND EARNINGS PER SHARE

Dividends per share (cents) 21.25 23.25 +9%
Basic earnings per share (cents) 33.4 36.5 +9%


Constant Currency Analysis

CONSTANT CURRENCY INCOME STATEMENTS
Year Ended Year Ended
% Change 31-Mar-18 31-Mar-19
NZ$M NZ$M
Total operating revenue 966.0 1,040.8 +8%
Cost of sales (327.7) (347.0) +6%
Gross profit 638.3 693.8 +9%
Gross margin 66.1% 66.7% +58bps
Other income 5.0 5.0 -
Selling, general and administrative expenses (291.0) (321.7) +11%
Research and development expenses (94.7) (100.4) +6%
Total operating expenses (385.7) (422.1) +9%
Operating profit 257.6 276.7 +7%
Operating margin 26.7% 26.6% +8bps
Financing expenses (net) (2.0) 0.9 -145%
Profit before tax 255.6 277.6 9%


The significant exchange rates used in the constant currency analysis, being the budget exchange rates for the year ended 31 March 2019,
are USD 0.72, EUR 0.59, AUD 0.93, GBP 0.52, CAD 0.94, JPY 77.00 and MXN 13.60.

A constant currency income statement is prepared each month to enable the board and management to monitor and assess the company’s
underlying comparative financial performance without any distortion from changes in foreign exchange rates. The table above provides
estimated NZ dollar income statements for the relevant periods, which have all been restated at the budget foreign exchange rates for the
2019 financial year but after excluding the impact of movements in foreign exchange rates, hedging results and balance sheet translations.

This constant currency analysis is non-conforming financial information, as defined by the NZ Financial Markets Authority, and has been
provided to assist users of financial information to better understand and assess the company’s financial performance without the impacts of
spot foreign currency fluctuations and hedging results and has been prepared on a consistent basis each half year. The company’s constant
currency income statement framework can be found on the company’s website at www.fphcare.com/ccis.

---

Annual Report 2019 | Care by design

A world
of care
1969
Our first humidifier began with three people, in one city and
a can-do prototype made from a humble fruit preserving
jar. In the 50 years since, we’ve transformed from across
town to across continents. Our work is all about talented
people working together to solve problems so that millions
of patients can have healthier, more restful, productive lives.
50 years of care today, many more from tomorrow.

2019BEYOND
care
collaboration
can-do

2Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
We know that
when great people
come together with a
can-do attitude
and an utmost
sense of care,
lives are changed.

3Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Helping approximately
14 million patients in more
than 120 countries, our
world of care continues
to expand, grow
and develop.

4Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Contents
OVERVIEW OF OUR BUSINESS
5
DETERMINING OUR MATERIAL MATTERS
10
FINANCIAL AND BUSINESS HIGHLIGHTS
12
CHAIRMAN’S REPORT
14
CEO’S REPORT
16
HOSPITAL / HOMECARE OVERVIEW
20
OUR STRATEGIES
22
– GLOBAL REACH
22
– CHANGING CLINICAL PRACTICE
24
– BETTER PRODUCTS
26
– SUSTAINABLE, PROFITABLE GROWTH
28
OUR BOARD
30
OUR EXECUTIVE MANAGEMENT TEAM
32
FINANCIAL COMMENTARY
35
FINANCIAL STATEMENTS
39
NOTES TO FINANCIAL STATEMENTS
43
AUDITOR’S REPORT
67
SOCIAL RESPONSIBILITY & GOVERNANCE
70
FIVE YEAR SUMMARY
99
GLOSSARY
102
GRI CONTENT INDEX
103
DIRECTORY
105
Constant currency information contained within this report is non-conforming financial information, as defined by the
NZ Financial Markets Authority (FMA) and has been provided to assist users of financial information to better
understand and assess the company’s financial performance without the impacts of spot financial currency
fluctuations and hedging results, and has been prepared on a consistent basis each financial year. A reconciliation
between reported results and constant currency results is available on page 36 of this report. The company’s
constant currency income statement framework can be found on our website at www.fphcare.com/ccis.
This report covers the financial year ended 31 March 2019 and is dated 27 May 2019. The report has been
approved by the Board and is signed on behalf of Fisher & Paykel Healthcare Corporation Limited by
Tony Carter, Chairman and Lewis Gradon, Managing Director and Chief Executive Officer.
LEWIS GRADON, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
TONY CARTER, CHAIRMAN
About this report
Welcome to Fisher & Paykel Healthcare’s 2019 Annual Report
– A World of Care.
We are privileged to be in an industry where the work we do has
a direct impact on improving people’s lives, right around the
world. Last year, we estimate that our products were used in the
treatment of approximately 14 million patients.
Our report this year underlines our primary focus on producing
innovative healthcare devices that improve the health and
quality of life for people all over the world, something that we
have been doing for the last 50 years. We also recognise the
importance of sustainable, profitable growth which will enable
us to continue to deliver new innovations and improved patient
outcomes for many years into the future.
Fisher & Paykel Healthcare see corporate social responsibility
and sustainability as inextricably linked to the way we do
business. We know that strong financial performance cannot be
achieved without looking after our people, suppliers and
customers. And being financially successful means we can
continue to be a major contributor to medical care, to our
communities and economies through areas such as tax and
employment, and to return a portion of profits to our
shareholders as dividends. Our awareness of the reciprocal
nature of this is what we believe positions our company
for long-term, sustainable and profitable growth.
This report is designed to meet the evolving needs and
requirements of a wide range of stakeholders. In previous years
we have prepared separate reports, including a separate
Corporate Governance Statement, detailing our governance,
sustainability and social responsibility practices. This year we
have incorporated all of these topics within this one report. As
with all areas of our business, we are constantly looking for
continuous improvement opportunities and would welcome
feedback on this report. Please address any questions,
comments or suggestions to investor@fphcare.co.nz.
Digital versions of this report, and of our previous annual,
interim and sustainability reports, are available at
www.fphcare.com/investor-reports.

5Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
OUR BUSINESS
AT A GLANCE
Fisher & Paykel Healthcare is a leading
designer, manufacturer and marketer
of products and systems for use in
respiratory care, acute care, surgery
and the treatment of obstructive
sleep apnea.
Our medical devices and
technologies are designed to
help patients get better faster.
We help patients transition to
less acute care settings, help
them recover more quickly and
provide solutions that can assist
them to avoid more acute
conditions. We also provide the
ability for many patients to be
treated in the home rather than
the hospital.
Product innovation is essential
to our success. Since 1969, when
our first prototype respiratory
humidifier was developed, we
have focused on continuous
development and innovation.
Our aim is to lead the way in the
development of medical devices
and technologies, and our
products are considered leaders
in their respective fields.
We are driven by our purpose of
improving care and outcomes
through inspired and world
leading healthcare solutions.
Assisting clinicians around the
world to deliver the best
possible patient care through
continuous product
improvement, pioneering new
therapies and changing clinical
practice is key to our success.

6Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
HOW OUR
BUSINESS WORKS
RESEARCH & DEVELOPMENT
Our R&D is based in New Zealand. The team
spends many hours in hospitals, and with
patients and clinicians, in order to develop
better technology that enhances patient care.
We typically invest around 9–10% of our revenue
in R&D annually.
SUPPLY CHAIN
We have distribution centres located around
the world and a network of distributors. We
use air, sea, road and rail freight, with a focus
on sustainable and cost effective methods
of transportation. We source materials
from all over the world and look for socially
responsible partners to support our growth.
THERAPIES
60% of our operating revenue is from
products and systems used in hospitals in
invasive ventilation, non-invasive ventilation,
nasal high flow therapy and surgery. The
remainder is from products used in home
environments to treat patients suffering
from obstructive sleep apnea and those in
need of respiratory support.
CUSTOMERS
We work with thousands of healthcare
professionals, including doctors, clinicians
and nurses, giving them the products and
tools to deliver the best possible care. Our
largest markets (in order of size) are North
America, Europe, and Asia Pacific.
MANUFACTURING
We manufacture in NZ (approximately 66%)
and Mexico (approximately 34%). The co-location
of engineering, quality, manufacturing, marketing
and clinical teams facilitates collaboration and
an awareness of the medical device process from
concept and design right through to how our
products are used by patients.
PATIENTS
Each year millions of patients are treated with
our products in over 120 countries. Seeking to
understand our patients’ needs is what drives
our R&D programme.
The needs of our customers
and their patients drive
everything we do. We call this
Care by Design.

7Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Canada
Direct Sales
Distributed sales with F&P people
Distribution Centres
Manufacturing Facilities
Mexico
China
Hong Kong
Taiwan
Japan
South Korea
Portugal
Brazil
Saudi Arabia
United
Arab Emirates
Indonesia
Colombia
Spain
Wales
France
USA
India
AustraliaNew Zealand
Scotland
England
Sweden
Poland
Northern Ireland
Netherlands
Germany
Italy
Belgium
Finland
Austria
Ireland
Switzerland
Turkey
Russia
Norway
Denmark
38
Our people are located
in 38 countries
1,493
People in North America
303
People in Europe
2,416
People in New Zealand
335
People in the
rest of the world
Sri Lanka

8Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
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Our inputsOur outputs
AGEING POPULATION | TECHNOLOGY ADVANCEMENT | HEALTHCARE COSTS INCREASING | OTHER EXTERNAL FACTORS
MARKET CONTEXT
Our
4,500+
people
50 years
of trusted
relationships
Benefits to
our people
Global
supply
networks
Increased
shareholder
value
Excellence
in R&D
Doubling
our constant
currency
revenue every
5-6 years
Trusted
brand
Improving
care & outcomes
through inspired
and world-leading
healthcare solutions
Care by Design.
Improved
care &
outcomes for
patients
Increased
efficiency
of care

9Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Our culture is encapsulated by the following values and beliefs:
OUR VALUES
Life
We relentlessly focus on
improving patients’ lives and
strive to provide a high quality of
life for our employees.
Relationships
We care for our patients,
customers, suppliers,
shareholders, the environment
and each other.
Internationalism
We are global in people, in
thinking and in behaviours.
Commitment
We value people who are
self-motivated and have a desire
to make a real contribution.
Originality
We encourage original thinking
which leads to the innovative
solutions required to create
better products, processes and
practices.
OUR BELIEFS
We believe in doing what is
best for the patient.
We believe the commitment to
doing the right thing is what our
customers will find compelling.
We believe that empathy,
effectiveness and efficiency are
essential to our success.
We believe our people
are our strength.
We believe lessons learned
are the cornerstones
of innovation.
We believe in the need to be
relentless in the pursuit of
healthcare innovation.
OUR UNIQUE CULTURE,
VALUES AND BELIEFS
In our view, a company’s culture is often
the key factor that distinguishes between
those that succeed and those that fail.
At Fisher & Paykel Healthcare we have a
culture of remembering our roots, having
genuine care for the work and always
doing the right thing. Actions, not just
words.
In the early days we were the underdogs,
competing against much larger
multinationals with more resources. We
trusted each other, we were inclusive, we
solved problems by looking for
alternatives, and we weren’t afraid to think
differently; to strive to deeply understand
our customers and try new things,
accepting that making mistakes is a
cornerstone of innovation. We knew that
our advantage was our ability to innovate.
Put simply, we had to be better to survive.
While some of our products may now be
the market leaders, we recognise the
importance of maintaining that underdog
mentality. It’s our culture, created back
when we were a team much smaller than
we are today, that will see us into the next
50 years.

10Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
DETERMINING OUR MATERIAL MATTERS
In 2018, we conducted a materiality assessment to determine our most
material issues. The process referenced guidance set by the Global
Reporting Initiative (GRI) framework, and “materiality” in this context
differs from financial and audit interpretations and NZX/ASX definitions of
material information.
In 2019, we validated and updated this materiality assessment through
interviews with a small set of key stakeholders who were chosen to
represent different facets of our business.
Results of the materiality assessment are shown in the matrix on the next
page. The highest-ranking issues have been grouped according to our
core business strategies, as indicated below, and will be the focus of this
report. Other issues have also been categorised, and are covered later in
this report, predominantly in the Social Responsibility & Governance
section.
Our materiality process
In 2018, material topics were identified through review of our business
risks matrix, the United Nations (UN) Sustainable Development Goals
(SDGs), GRI issues, and the UN Global Compact. Additionally, we drew on
our knowledge from regular consultation with customers, healthcare
professionals, suppliers and investors. We also considered broader trends,
such as the ageing population, healthcare demographics and disruptive
technologies. Subsequent interviews were conducted with a cross-
functional range of our internal and external stakeholders asking for their
assistance in prioritising our topics. We then consulted and reflected on
the results with members of our Executive Management team.
While we did not expect these topics to change significantly for 2019, we
have again elected to directly engage a cross-section of internal and
external stakeholders, this time through a series of interviews conducted
by an independent third party, thinkstep. Included in the 2019 interviews
were representatives from our employees, customers, physicians,
community, healthcare professionals, investors and suppliers.
When our original materiality matrix was developed we asked our
stakeholders to rank issues according to what they believed should be the
most important to our business. As can be seen in the matrix, there was
strong alignment of views between internal and external stakeholders.
The underlying themes have remained broadly consistent with last year’s
materiality process. Patient safety remains an overriding priority for all
stakeholders. The importance of innovation and product quality were also
common threads in the 2019 interviews. Another theme that came
through very strongly this year was that it is our culture that sets us apart
– a culture that is innovative, supportive and always puts the patient first.
These themes will be explored further in future reports as we continue to
build on the management and reporting of environmental, social and
governance topics we began in 2018.
The approach taken to our materiality assessment and the content in this
report has been informed by the principles of the GRI. A GRI reference
index based on the GRI Sustainability Reporting Standards (2016) can be
found on pages 103 to 104. We anticipate that future reports will be in
accordance with the GRI Standard (core).
CUSTOMER EXPERIENCE
LEGAL COMPLIANCE
ANTI-BRIBERY AND CORRUPTION
MARKET ACCESS RISK
PRODUCT INNOVATION
PRODUCT QUALITY
CYBER SECURITY AND
DATA PROTECTION
EMPLOYEE ATTRACTION,
DEVELOPMENT AND RETENTION
PATIENT SAFETY
ETHICAL RESEARCH
SUSTAINABLE, FINANCIAL
PERFORMANCE
HEALTH, SAFETY & WELLBEING
INTELLECTUAL PROPERTY
BUSINESS CONTINUITY
CORPORATE GOVERNANCE
Global reach
Better products
Sustainable,
profitable growth
Change
clinical practice

11Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
United Nations Sustainable
Development Goals
Fisher & Paykel Healthcare
supports the UN SDGs. We
have identified three goals
where we believe we have a
unique opportunity to make a
positive difference in order to
achieve a better and more
sustainable future for all. We
have highlighted below the
SDGs to which we can
contribute the most and in this
report we share areas and
initiatives where we contribute
toward these goals.
MATERIALITY MATRIX
Patient safety
Product
innovation
Product quality
Health, Safety & Wellbeing
Healthcare demographics
Resource efficiency
Carbon & energy
Community
Corporate governance
Ethical research
Disruptive technologies
Improving public health
Business continuity
Market access risk
Labour practices
Healthcare waste management
Ethical supply chain
Diversity & inclusion
Local employment
Intellectual Property
Employee attraction, development
and retention
Anti-bribery & corruption
Cyber security & data protection
Customer
experience
Legal compliance
Sustainable financial
performance
BUSINESS IMPACT

(based on stakeholder concern)
STAKEHOLDER CONCERN (external stakeholders only)
5.56.06.57.07. 58.08.59.09.510.0
5.5
6.0
6.5
7.0
7. 5
8.0
8.5
9.0
9.5
10.0

12Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Financial &
business highlights
OPERATING REVENUE
NZ$1.07 billion

9%
NET PROFIT AFTER TAX
NZ$209.2 MILLION
10%
GROSS MARGIN
56 BASIS POINTS INCREASE
66.9%
TOTAL DIVIDEND FOR YEAR
NZ 23.25CPS FULLY IMPUTED
9%
HOSPITAL REVENUE GROWTH
NZ$642.3 MILLION
12%
SPEND ON R&D NZ$
9% OF OPERATING REVENUE
$100.4m
NEW APPLICATIONS CONSUMABLES
REVENUE GROWTH
20%
( CONSTANT
CURRENCY)

13Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
OPERATING REVENUE
NZ$ MILLIONS
NET PROFIT AFTER TAX
NZ$ MILLIONS
REVENUE BY PRODUCT GROUP
12 MONTHS TO 31 MARCH 2019
REVENUE BY REGION
12 MONTHS TO 31 MARCH 2019
120+
COUNTRIES
Hospital
Homecare
Distributed & Other
North America
Europe
Asia Pacific
Other
60%
1%
39%
47%
29%
20%
4%
1516171819
672.3
815.5
894.4
1,070.4
980.8
1918171615
113.2
143.4
169.2
209.2
190.2
+
INTRODUCED
F&P Vitera
TM
full face mask,
F&P Optiflow
TM
3S nasal cannula,
and new neonatal breathing
circuits for the F&P 950
TM
Heated
Humidification System.
+
CONTINUED
with the global roll-out of our
enterprise resource planning
system (ERP).
+
IMPACTED
the lives of approximately
14 million patients around
the world.
+
COMPLETED
construction of our second
manufacturing facility in Tijuana,
Mexico with operations to
commence during FY20.
+
WELCOMED
Neville Mitchell as a non-executive
director and two new members of
our Executive Management Team;
Lyndal York as CFO and
Marcus Driller as VP-Corporate.
+
AWARDED
two Gold Pins in the User
Experience category at the
NZ Best Design Awards for
F&P InfoSmart
TM
Web and our
F&P Sleepstyle
TM
patient app.
+
PROGRESSED
an exciting product pipeline, with
several new product launches
anticipated.
+
GREW
the body of clinical evidence
supporting the use of Optiflow
nasal high flow, including a key
publication demonstrating
significant benefits for Chronic
Obstructive Pulmonary Disease
(COPD) patients in the home
using our myAirvo
TM
device.
+
INCLUDED
in the FTSE4Good and
Dow Jones Sustainability
Indices for 2018.

14Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
I am pleased to report on what has
been another successful year for our
company with net profit after tax up
10% to $209.2 million. Of particular
note, we were delighted to achieve
the milestone of becoming a
NZ$1 billion company, with
operating revenue of $1.07 billion.
Report from
the Chairman
of the Board
Tony Carter
We continue to build on our history of
innovation and global competitiveness and
our drive to do things differently and
better.
It is now 50 years since Fisher & Paykel’s
prototype respiratory humidifier was first
developed. It took three years to get the
Spence and Melville Humidifier to the
prototype stage. The company then
worked with clinicians and patients,
experts from New Zealand’s Department
of Scientific and Industrial Research and
specialist materials manufacturers.
The project spanned from design to
manufacturing logistics to protection of
intellectual property. The focus was on
international sales and a key factor during
development was ensuring the product
met standards specifications for global
markets. As it is today, our philosophy of
collaboration with world-leading clinical
experts was at the forefront of our efforts.
Fifty years on, we are a substantial
business, operating successfully on the
global stage and with a proven track
record. Our product range has grown to
include over 1,400 products and sales have
grown from just $20,000 in 1972 to be over
$1 billion now.
However, some things have not changed.
Our relentless focus on delivering the best
solutions for patients continues to
underpin all that we do and our ‘Care by
Design’ philosophy unites our global team
of over 4,500 people. On behalf of the
Board, I would like to acknowledge the
efforts of all our people in our markets
across the world.

15Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Protection of Intellectual Property
Throughout our history, we have invested
consistently in R&D, leading to products and
systems which have enabled us to positively
impact the lives of many millions of patients.
Protecting this investment and our
intellectual property is crucial in today’s
competitive global marketplace.
We have now settled all outstanding patent
infringement disputes between the company
and ResMed. We are pleased to bring these
disputes to a close and we appreciate the
support of our customers and shareholders
through the process. We will continue to
defend and protect our intellectual property
where necessary.
Investing in our business
Our aspiration remains to sustainably double
our constant currency revenue every five to
six years and we are investing in our
business to support this growth.
We took possession of our second Mexican
manufacturing facility - the Melville Building
- in January 2019 and our first production
output is expected in the middle of this year.
This is on a 15 hectare campus providing
room for future expansion. The location is
part of a global medical device
manufacturing hub in Tijuana and allows us
access to the established skill set of the local
workforce. The Board visited our Mexican
facilities in September 2018 and we continue
to be impressed with the quality, efficiency
and performance of our Mexican teams.
In New Zealand, we are making good
progress on the construction of our fourth
building, which we expect to be completed
in early 2020. This will house a combination
of R&D, pilot manufacturing and a
distribution centre and has been designed
and built with environmental sustainability in
mind, to a New Zealand Building Council
Green Star 5 rating.
Your Board
We farewelled long serving director Arthur
Morris in August last year and welcomed
Neville Mitchell as a non-executive director.
Neville has extensive global financial and
medical device experience and most
recently served as Chief Financial Officer of
ASX-listed Cochlear Limited, the world
leader in the development, manufacture and
sale of cochlear implants.
We were also pleased to welcome Claudia
Wyss as part of the Future Directors
programme, which provides Board
participation for potential directors. We
believe this is a valuable programme that
not only provides benefit to our company,
but also grows the pool of director talent in
New Zealand.
Both Neville and Claudia bring valuable
insights and expertise which complement
that of other Board members.
We continue to find an external independent
review of the Board to be a very useful
process, identifying areas of strength and
opportunities for improvement. This year’s
review helped the Board further refine
succession planning. We were able to use
these insights as part of the director search
process, following which Neville Mitchell was
appointed to the Board.
Dividend
The Board has declared a final dividend of
13.50 cents per share. This takes the total
dividend for the 2019 financial year to 23.25
cents per share and equates to a dividend
payout ratio of approximately 64% of net
profit after tax for the year.
Given the company’s strong performance
over the last five years and reduction of debt
to below the target gearing range, the Board
has determined to suspend the dividend
reinvestment plan. As a result, all
shareholders will receive dividends in cash
for the dividend scheduled to be paid on
5 July 2019.
We have an exciting future
Demand for quality healthcare continues to
increase, alongside the rising costs of caring
for aging and growing populations.
Healthcare providers and patients are
seeking solutions that deliver improved
patient outcomes in more sustainable and
effective ways. Our innovative products and
therapies meet this need, last year improving
outcomes for approximately 14 million
patients around the world. Reducing acuity
of care and, where possible, allowing for
treatment in the home rather than the
hospital, further reduces the pressure on
healthcare systems.
We look forward to continuing to deliver
consistent sustainable growth and value for
our communities and our shareholders for
another 50 years and more.


TONY CARTER
CHAIRMAN

16Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Report from the
Managing Director &
Chief Executive Officer
Lewis Gradon
Our long term and consistent growth
strategy continues to drive results,
once again delivering record revenue
and strong profit growth as we reached
the milestone of achieving over
$1 billion in revenue.
Our consistently improving results are a
reflection of our innovative products, the
dedication of our teams around the world, a
culture of continuous improvement, and the
value we offer for clinicians and patients.
Care and innovation underpins all that we
do, as we continue to focus on improving
patient outcomes through inspired and
world-leading healthcare solutions.
Our business is structured into two parts –
Hospital and Homecare - both of which
delivered revenue and operating profit
growth in FY19. Sixty percent of revenue was
from products and therapies used in the
hospital in invasive ventilation, non-invasive
ventilation, nasal high flow therapy and
surgery. Thirty nine percent of revenue was
from products used in the home
environment to treat patients with OSA and
those in need of respiratory support.

17Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Hospital
Our hospital business began in invasive
ventilation in the early 1970s. Over the last
20 years, we have expanded into new
applications for our products in the hospital,
including Optiflow nasal high flow therapy,
non-invasive ventilation and surgical
humidification. Revenue in our Hospital
product group grew 12% to $642.3 million
and 62% of hospital consumables revenue
was contributed by these newer applications
for our technology. The most recent
Northern Hemisphere flu season was less
severe than the previous year, but the results
in our hospital product group reflect similar
underlying growth trends to previous
periods. Constant currency growth of 20% in
new applications consumables revenue was
very pleasing given the weaker flu season.
This year we released revolutionary neonatal
breathing circuits for the F&P 950 heated
humidification system, following on from the
successful launch of the adult system. The
feedback we received from customers
during clinical trials has been
overwhelmingly positive, principally in terms
of ease of use and performance. The
neonatal circuits are currently available in
New Zealand and Australia and will be rolled
out to other countries over the next year.
Our Optiflow nasal high flow therapy
remains a key growth driver for our hospital
business. We expect a growing body of
clinical evidence to support the use of
Optiflow for a wider range of patient groups,
and in more areas of the hospital outside the
intensive care unit such as respiratory wards
and in the emergency department. Over the
past year we estimate that approximately
3 million patients were treated with our
Optiflow nasal high flow therapy.
In surgical humidification, we are
concurrently continuing to improve on
existing products and technology. Adding
further tangible benefits for surgeons and
patients; growing the body of clinical
evidence through supporting more clinical
trials; and using our products and the clinical
evidence to generate sales in more markets.
Homecare
Our Homecare group comprises products
and systems used to treat obstructive sleep
apnea (OSA) and for patients requiring
respiratory support in the home. OSA
remains the largest portion of Homecare
revenue, and we see home respiratory
support, which is growing strongly from a
small base, as an exciting opportunity for
our company.
Operating revenue in our Homecare product
group grew 6% to $421.4 million during the
year. A hiatus in OSA mask launches since
the successful release of our F&P Brevida
mask in 2016 was offset by a strong
contribution from the successfully
completed roll out of our new SleepStyle
OSA CPAP system to all major markets, and
from home respiratory support.
We were pleased to launch our new F&P
Vitera OSA mask in May this year. This mask
puts patient comfort first and incorporates
our new VentiCool
TM
technology, the next
generation of mask seal and other innovative
design features. Vitera is currently available
in New Zealand, Australia, Europe and
Canada and it will be rolled out around the
world as relevant regulatory clearances are
received.
We see a growing opportunity to deliver
respiratory support in the home for patients
with chronic respiratory conditions, such as
COPD. The publication of a long term study
in Denmark in April 2018, on the benefits of
nasal high flow therapy in the home for
patients with COPD, demonstrated the value
of this therapy and we are sharing this with
clinicians. A number of long term trials are
underway around the world, with expected
timelines of three to five years. We expect to
see increasing uptake of the therapy as the
results from these clinical studies are
published.
Better products
One of our overarching principles is to
develop innovative products which solve
specific problems. R&D remains a
fundamental part of our success story, with
a cumulative $750+ million invested in R&D
since 2001.
Last year, we invested $100 million (equal to
9% of our revenue) into R&D and we have a
full pipeline of new products in development.
Over the past year we were pleased to
launch neonatal breathing circuits for the
F&P 950 heated humidification system, our
new Optiflow 3S nasal cannula and, more
recently, our new Vitera mask.
3million
ESTIMATED PATIENTS WERE TREATED WITH
OUR OPTIFLOW NASAL HIGH FLOW THERAPY
OVER THE PAST YEAR

18Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
All of our teams work collaboratively with a
large network of leading physicians and
clinical researchers all around the world as
we improve our products and make our
contribution to changing clinical practice.
We held 12 international clinical forums in
our Auckland, New Zealand facility over the
past year. The purpose of these forums is to
consult with experts who directly manage
patients on a day-to-day basis and to
discuss topics of research interest.
Change clinical practice
Helping to improve outcomes and reduce
costs by contributing to changing clinical
practice takes time. Clinical validation from
research, trials and studies is a key
component to this. At any one time, we are
supporting multiple studies around the
world, in partnership with researchers,
clinicians and healthcare providers. These
range from short term pilot trials to
demonstrate feasibility, through to
longer-term studies running over several
years to qualify outcomes.
Our relationships with clinicians around the
world ensure we deliver the best possible
tools and products to enable them to
provide the best possible care.
Global Reach
Since our inception, we have always
identified as a global company, competing
on the worldwide stage. We sell in more
than 120 countries, and we have our own
people in 38 countries. We continue to
identify and assess opportunities to expand
the number of our people selling into
hospital, homecare and surgical
environments. While still a relatively small
proportion of our business today, we are
seeing growing demand in China and India,
both of which offer significant future
potential for our company with large
populations and increasing spend on
healthcare.
Sustainable profitable growth
Our strategy is necessarily very consistent.
We aim to grow our business in a profitable
way that is sustainable over the long term.
We are continuously improving the
foundations of our business in invasive
ventilation in intensive care and the
treatment of OSA. Our medium and longer
term opportunities lie in helping to change
clinical practice to improve care and
outcomes and at the same time reduce
costs to healthcare systems. Clinical practice
is slow to change and requires persistence.
To realise these opportunities we think, act
and invest over the long term.
We are continuing our investment in
improved Enterprise Resource Planning
(ERP) systems with the rollout of the SAP
ERP system across both manufacturing
plants and the Asia Pacific region completed
in 2018. Our focus will be on the
implementation of SAP in our United States
operations during 2019.
We are seeing growing demand in China and
India, both of which offer significant future
potential for our company with large
populations and increasing spend on healthcare.

19Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Our people
At its core, a company is a collection of
people. Our approach of ‘Care by Design’
draws together and unites our global team
of over 4,500 people with the simple
thought that we care about what we do, and
the impact we have on patients, customers
and all of our other stakeholders.
We have a highly experienced executive
team and this year we were pleased to
welcome Lyndal York as Chief Financial
Officer. Lyndal is a new appointment
following the retirement of long-standing
CFO, Tony Barclay, in May last year.
Lyndal has strong international experience
within the medical device industry, and as
such, possesses a good understanding of its
unique characteristics. Prior to joining us,
Lyndal most recently served as Chief
Financial Officer of ASX-listed Asaleo Care,
based in Melbourne. Prior to her role at
Asaleo Care, she held Head of Group
Finance and Group Financial Controller roles
at Cochlear over an 11-year period.
Outlook
Achieving $1 billion in revenue is a milestone
for our company, however, we are not sitting
still. We will continue to build on our
strengths and continuously improve and
expand our portfolio of valued solutions for
healthcare providers and patients.
We expect capital expenditure for the
2020 financial year to be approximately
NZ$150 million as we increase capacity
for both existing and new products and
complete construction of the fourth building
on our Auckland campus.
At current exchange rates we expect full
year operating revenue for the 2020
financial year to be approximately
NZ$1.15 billion and net profit after tax
to be approximately NZ$240 million to
NZ$250 million. Recent changes introduced
by the New Zealand Taxation (Research and
Development Tax Credits) Act 2019, a
significant reduction in patent litigation
costs and forecast currency benefits have
been factored into our earnings guidance
for 2020.
Historically, our growth has come from our
expertise in respiratory humidification and,
in the last two decades, from CPAP therapy
and products to treat OSA. These areas
remain the foundation of our business,
however, we are now using the expertise we
have developed over the last 50 years to
build our presence in new segments in the
healthcare market where we can add value.
We are excited about the potential in
Optiflow nasal high flow in both hospital and
home environments, as well as the longer
term opportunity in surgical technologies.
We are looking forward to the future and
what it holds for our company and are well
positioned to meet growing demand for our
products and systems and continuing to
deliver better healthcare solutions.
LEWIS GRADON, MANAGING DIRECTOR
AND CHIEF EXECUTIVE OFFICER
4,500+
OUR GLOBAL TEAM OF OVER
4,500 PEOPLE

20Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Hospital
60%
OF OPERATING REVENUE
CONSTANT CURRENCY CONSUMABLE
REVENUE GROWTH FROM NEW
APPLICATIONS
20%
OPERATING REVENUE GROWTH
(NZ$642.3M)
12%
Invasive ventilation
Our products for invasive ventilation provide
warm, humidified air to patients with bypassed
airways. This can help maintain the natural
balance of heat and moisture in the airways.
Non-invasive ventilation
Non-invasive ventilation is a therapy which
provides airway support for patients through a
face mask. Heated and humidified gas flows can
improve patient comfort and compliance,
reduce airway drying and improve secretion
clearance.
Optiflow nasal high flow therapy
Nasal high flow is a respiratory care therapy
delivering high flows of air and oxygen through
a unique F&P Optiflow nasal cannula. This
allows comfortable, effective delivery of up to
100% oxygen for hypoxemic patients in mild to
moderate respiratory distress.
Surgical technologies
Our surgical products provide warm, humidified
CO
2
during surgery, which may protect patients
from hypothermia and post-operative pain and
reduce the risk of surgical site infections,
adhesions and cancer metastasis.

21Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
CPAP therapy
Our range of CPAP machines and masks
support patients with obstructive sleep
apnea. Our masks are extremely popular
and have become well known for their
comfort, simplicity and ease of use, which
is a key factor in patient compliance. Our
patient management and support tools
complete a seamless experience to help
patients succeed in embracing therapy.
Home respiratory support
We have taken our expertise in nasal high
flow therapy and non-invasive ventilation
from the hospital to offer respiratory
support in the home and in long-term care
settings, with the intention of improving
patients’ quality of life and reducing
hospital admissions. The myAirvo device
provides flows of humidified air, which can
contain supplemental oxygen if necessary
through an Optiflow nasal cannula or
tracheostomy connector, and is used for
patients with chronic respiratory
conditions such as COPD or
bronchiectasis.
Homecare
39%
OF OPERATING REVENUE
OPERATING REVENUE GROWTH
(NZ$421.4M)
6%

OSA FLOW GENERATOR CONSTANT
CURRENCY GROWTH
27%

22Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Global Reach
Increase our presence around the world
We work with thousands of healthcare
professionals around the world, including
doctors, clinicians and nurses, providing
them with the products and tools they need
to deliver the best possible care. We now
have more than 1,000 people in our sales,
marketing and support teams in 38 countries.
Building trusting relationships between our
people and our customers is a critical part of
our sales approach, right around the world.
Sharing our Expertise
Each year, we continue to expand, train and
strengthen our sales teams so they are well
equipped to explain the clinical advantages
of our products and support a beneficial
change in clinical practice.
This was clearly in evidence when Simon
Bedwell, an F&P sales representative in the
Australian state of New South Wales,
was contacted by a doctor in the Nepean
Hospital Neonatal Intensive Care Unit
(NICU). She was caring for two premature
babies, both born at 27 weeks. The babies
had spent six months in hospital, had
become oxygen dependent, and were
experiencing nose bleeds from their therapy.
The medical team had tried several times
to wean the babies off the oxygen, but they
had crashed each time. As a result, the
babies were expected to spend a minimum
of another six months in intensive care.
Customer experience
MATERIAL ISSUE

23Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Simon visited the doctor and together they
discussed using humidified nasal high flow
therapy, rather than cold, dry oxygen.
Through their discussion and demonstration
of F&P’s Airvo
TM
device, it became clear that
a different approach to therapy could
benefit these patients.
The babies were transitioned to the Airvo
and immediately their statistics improved.
One baby was discharged a month later.
The other, whose mother had not been
home for six months as they lived in a very
remote area out of the city, was able to
return home where the mother administered
the therapy herself using the Airvo device.
The baby was completely off the therapy
within three months.
Where there is a will,
there is a way
Even the smallest things can make a
difference as attested to by the actions
of F&P Respiratory Sales Specialist,
Mike Krumholz.
Very early on a Saturday morning, Mike
was contacted by a hospital customer in
New York, who were out of RT380 breathing
circuits. Mike immediately drove with his two
young children to Brooklyn to deliver some
circuits so that patient care could continue.
The respiratory director of the hospital
emailed us with this story and had this to say:
“ Everyone’s time is
precious. The fact that
he went out of his way
to be of assistance was
very much appreciated.
As a customer, I
admire and appreciate
Mike’s dedication
to Fisher & Paykel
and their customers.”
Going above and beyond
Our sales people will often go above and
beyond to ensure our customers’ needs are
met. In February 2019, the VCU Medical
Center, located in Richmond, Virginia,
decided to implement F&P humidifiers
across seven ICUs and 20 acute care areas.
A team from our US office spent two weeks
working on the implementation - assembling
equipment, training and ensuring that the
transition was smooth and seamless. The
training on its own was a significant
undertaking, with a group of respiratory
therapists, nurses, doctors and other team
members in each of the 27 care areas. The
implementation was completed successfully,
on time and seamlessly, with a follow up visit
three months later.
Jennifer Reed, the Neonatal & Pediatric
Respiratory Manager at VCU Health
commented: “This crew is amazing. They
made me exhausted watching them work.
They kept their enthusiasm up the entire
time. I appreciate each and every one of
F&P’s team members, including those
working behind the scenes to make this
implementation a success. A seriously
impressive team!”

24Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Changing
clinical practice
Utilise our expertise to develop new therapies and
reduce costs to healthcare systems
OUR QUALITY MANAGEMENT SYSTEM
The healthcare device industry is highly
regulated worldwide. Our ability to meet
stringent standards is vital to ensuring
market acceptance of our products. We
comply with these standards by operating a
quality management system certified to a
range of international standards which apply
to both our manufacturing facilities and our
sales network. These include the US Food &
Drug Administration (FDA)’s Quality System
Regulation and the ISO 13485 Quality
Management System standard, along with
other global regulations.
We have over 200 people in our Quality and
Regulatory team, working across product
design and development, manufacturing,
distribution and market surveillance, as
well as operations in New Zealand, Mexico
and the US. Our quality teams operate
as a service to our product and process
development and manufacturing operations
teams, which means that quality controls
are built into the design process through
a partnership approach.
We take a proactive risk management
approach and the quality management
process starts right at the beginning with
the design assurance process and then
encompasses the clinical evidence to
validate the effectiveness and efficiency
of the therapy.
Patient safety
MATERIAL ISSUE

25Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Developing a Body of Clinical Evidence
– Optiflow nasal high flow therapy
We understand what is required to develop
a sufficient body of clinical evidence to drive
practice change. This began in the early
1970’s, supporting research being conducted
on the use of active humidification during
invasive ventilation. Again, we assisted with
clinical studies in the late 1990s to
demonstrate the benefit of humidifying
CPAP therapy for OSA patients. In the first
decade of the 2000s we supported studies
that were investigating the physiological
effect and mechanisms of action of nasal
high flow. In 2018 we saw a further 247
clinical papers published investigating the
use of nasal high flow in different patient
groups. This brings the total number of
published clinical papers on nasal high
flow to 1,584 since 2003, as shown in the
graph above.
patients who are being treated in other parts
of the hospital outside of the ICU. These
studies are being conducted globally by the
leading researchers in the field.
F&P is now supporting clinical research
investigating the use of nasal high flow in
the home for patients with COPD. In last
year’s annual report we mentioned the first
significant clinical outcome study, Storgaard
et al was published in April 2018. There are
at least 10 additional studies currently being
conducted in relation to nasal high flow on
COPD patients and we look forward to their
publication over the next five years.
Nasal high flow is emerging as a popular
non-invasive mode of respiratory support in
adults and children. Initially, studies
investigated the mechanisms of action and
how nasal high flow works, using computer
and animal models. This then progressed
into clinical indications, followed by studies
confirming the safety and effectiveness of
nasal high flow. In the last five years, a
number of robust clinical outcome studies
have been published, including randomised
controlled trials looking at the outcomes for
patients with acute hypoxemic respiratory
failure. We believe that the clinical evidence
for use of nasal high flow therapy in this
patient group is compelling.
Interest has now turned to studies
investigating mechanisms of action, clinical
indications, safety and effectiveness of nasal
high flow in patients with hypercapnia and in
PUBLISHED CLINICAL PAPERS
NASAL HIGH FLOW FOCUSSED
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
Calendar Year
0
50
100
150
200
250
AdultNeonatal & Paediatric

26Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Better Products
Continuously strive to improve our products
Whether in Hospital or Homecare, our
product development process is informed
by extensive research to understand the
needs of our patients and the environments
our products are used in. This is exemplified
in two of our recent product introductions.
VITERA FULL FACE MASK –
‘REDEFINING COMFORT’.
The vision of the OSA mask development
team is to create CPAP masks that patients
want to use and can easily use.
Despite dramatic improvements in mask
technology in recent years, the number one
unmet need for patients undergoing CPAP
therapy is still mask comfort. When designing
F&P Vitera, the mask development team
focused on designing a full face mask which
is first and foremost a comfortable mask.
Comfortable not just at the initial
consultation, but across a full night’s sleep.
Drawing on the design ‘DNA’ from our highly
successful F&P Simplus
TM
mask, and
recognising that comfort means different
things to different people, our F&P Vitera
design team focused on stability,
adaptability and breathability.
Stability of the mask is provided by the
Stability Bar. Wide anchoring points on the
top and bottom straps provide a greater
zone of support, reducing the likelihood of
the cushion riding up the face or the mask
dislodging. This zone of support also allows
our next generation RollFit
TM
XT cushion to
adjust and seal dynamically on a range of
different nose and face shapes, providing
a more adaptable mask.
Product innovation
Product quality
MATERIAL ISSUES

27Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
With mask headgear typically covering a
portion of a patient’s head, patients can
experience discomfort from heat and
sweating. Vitera headgear features
proprietary breathable fabric – VentiCool
– that allows 21 times greater air flow and
32% more moisture transfer than the
material used in our other leading full face
masks, helping patients keep cool and
comfortable during sleep.
We believe F&P Vitera is our most
comfortable full-face mask yet and reflects
another step forward in patient care.
Our vision for the F&P 950 System neonatal
circuit was to provide simplicity for
caregivers by having a circuit that could
handle these changing environments
without the need for any detachable
unheated extensions or other caregiver
intervention.
The result is Thermadapt™, a technology
that is incorporated across the F&P 950
System neonatal circuit range. Thermadapt
enables independent heating of two zones
within the inspiratory limb, allowing the
circuit to adapt to changing temperature
conditions and reducing condensate.
This, coupled with a longer circuit length,
also encourages skin-to-skin contact time,
giving parents the opportunity to bond
with their baby.
NEONATAL CIRCUITS FOR F&P 950
The NICU provides a unique challenge
when designing a breathing circuit due
to the changing temperature conditions
between incubator, warmer, and ambient
environment.
When a baby is in an ambient environment,
such as during skin-to-skin contact with a
parent, the circuit will have a single heating
requirement across its length. When a baby
is placed in an incubator or warmer, this
changes. While one end of the circuit
remains in the ambient conditions of the
room, the other is exposed to the heated
environment of the incubator or warmer.
This variation in operating environment
across the length of the circuit creates
challenges for the delivery of humidified
gases while still controlling condensate.

28Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Sustainable
profitable growth
Ensuring our growth is managed in a sustainable way
Fisher & Paykel Healthcare’s new Chief
Financial Officer, Lyndal York, moved from
Australia to New Zealand to take up the role
and says the best thing about working for a
medical device business is knowing that you
are having a positive impact on people’s
lives – and at F&P Healthcare, this belief is
even more pronounced. Lyndal commenced
her role with F&P in March 2019. We asked
what attracted her to the company, her
reflections on the first few months and what
drives her.
Sustainable financial performance
MATERIAL ISSUE
I like that F&P is a global company based in
New Zealand. The culture is what attracted
me the most – everyone in the organisation
believes 100% in doing the right thing for
our customers and patients, no matter
if you are in sales, finance or manufacturing.
Everything is about Care by Design;
delivering better outcomes for our
customers and patients.
Continuous improvement is also ingrained
into the culture and everyone is always
striving to do things better and more
efficiently.
I inherited a high performing global finance
team. As a group, we have an in-depth
understanding of our business and what
drives our results. The rollout of the SAP
system is going well and we are focused on
making sure we get the most benefit from
this. We will also be looking to further refine
our sustainable growth metrics and making
sure they are well embedded in the business.
There is increasing demand for companies
to take a more proactive approach to
corporate social responsibility and
sustainability. F&P is very conscious of this
and we will be building on the already
transparent approach to reporting and
disclosure. On a personal level, I am looking
forward to meeting investors and ensuring
F&P remains a compelling investment
opportunity.
F&P has a business model built around
long-term thinking. It can take many years to
bring a new product to market, so we need
to make sure we are thinking a long way
ahead to support our product development
pipeline. Our patients are also moving into
different life stages and we’re looking at how
we can support them and our customers as
their healthcare needs change. We are also
looking at how we can use our expertise to
expand into new areas. For example, F&P
is a global leader in respiratory care in
hospitals and we are now looking to
leverage this to offer respiratory support
in the home.
I have worked in medical device businesses
for the past 15 years, including with
companies where most of the sales are
offshore. F&P presents a similar business
model and challenges and I believe my
experience and insights will be of value in
my role. I have also personally experienced
the invaluable benefits of respiratory care
when my daughter was born premature and
spent a number of months being supported
in a neonatal unit. The best thing about
working for F&P is the altruistic factor –
going home at the end of the day, knowing
we are making a positive difference in
people’s lives.

29Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
OUR ASPIRATION: Sustainably DOUBLING
our constant currency revenue every 5-6 years.
LONGER-TERM
*CONSTANT CURRENCY
MEDIUM-TERM
HOME
RESPIRATORY
SUPPORT
HOSPITAL
RESPIRATORY
SUPPORT
SURGICAL
TECHNOLOGIES
RESPIRATORY
HUMIDIFICATION
CPAP
THERAPY/OSA
1970
SHORT-TERM
TO DAY
OUR ASPIRATION: 12%+ P.A. REVENUE GROWTH CC*
OUR ASPIRATION: Sustainably DOUBLING
our constant currency revenue every 5-6 years.

30Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Tony Carter
Geraldine McBride
Lewis Gradon
Neville Mitchell
Michael Daniell
Donal O'Dwyer
Pip Greenwood
Scott St John

31Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Tony Carter
Chair and non-executive director
TERM OF OFFICE:
Appointed December 2010, last re-elected
24 August 2017, appointed Chair in April 2012.
Tony was managing director of Foodstuffs
New Zealand Limited for ten years, until his
retirement in 2010. Tony is chairman of Air 
New Zealand Limited, a director of Fletcher
Building Limited, Vector Limited and ANZ Bank
New Zealand Limited, and a trustee of the
Maurice Carter Charitable Trust.
Master of Engineering, MPhil (Engineering)
COMMITTEE RESPONSIBILITIES:
Member People and Remuneration Committee,
Member Audit & Risk Committee, Member
Quality, Safety and Regulatory Committee.
Geraldine McBride
Non-executive director
TERM OF OFFICE:
Appointed August 2013, last re-elected
24 August 2017.
Geraldine has been involved in the technology
industry for 30 years and has a wealth of global
experience. She has held senior executive roles
at SAP AG and Dell Inc, and is a former President
of SAP North America. She is a current director
of National Australia Bank and Sky Network
Television Limited, and the founder and CEO of
MyWave.
Bachelor of Science – Zoology
Lewis Gradon
Managing Director and Chief Executive
Officer
TERM OF OFFICE:
Appointed 1 April 2016, elected 23 August 2016.
Lewis became Managing Director & CEO in
April 2016. Prior to that, he spent 15 years as
Senior Vice President – Products & Technology,
and six years as General Manager – Research
and Development. During his 35 year tenure
with Fisher & Paykel, Lewis has held various
engineering positions overseeing the
development of our range of products as well as
the development of our manufacturing, quality,
intellectual property, supply chain and clinical
research functions.
Bachelor of Science – Physics
Neville Mitchell
Non-executive director
TERM OF OFFICE:
Appointed November 2018.
Neville was CFO and Company Secretary of
Cochlear Limited between 1995 and 2017. He is
a non-executive director of Sonic Healthcare,
Osprey Medical and Q’Biotics Group and a
member of the Australian Board of Taxation
and a director of the South East Sydney Local
Health District Board. Previously, he served on
the New South Wales Medical Devices Fund, was
Chairman of the Group of 100, and Chairman,
Standing Committee (Accounting and Auditing),
for the Australian Securities and Investments
Commission.
Bachelor of Commerce
COMMITTEE RESPONSIBILITIES:
Member Quality, Safety and Regulatory
Committee.
Michael Daniell
Non-executive director
TERM OF OFFICE:
Appointed November 2001, last re-elected
23 August 2018.
Mike was Managing Director and CEO of Fisher
& Paykel Healthcare from November 2001
to March 2016. He was General Manager of
Fisher & Paykel’s medical division from 1990
to 2001 and previously held various technical
management and product design roles within
the company. Mike is a member of the Council
of the University of Auckland, a director of
Tait International Limited and the Medical
Research Commercialisation Fund, and Chair of
the Medical Technologies Centre of Research
Excellence.
Bachelor of Engineering (Hons)
COMMITTEE RESPONSIBILITIES:
Member Audit & Risk Committee.
Donal O’Dwyer
Non-executive director
TERM OF OFFICE:
Appointed December 2012, last re-elected
23 August 2016.
Donal is Chairman of Atcor Medical Pty Limited
and a director of Cochlear Limited, Mesoblast
Limited and nib Holdings Limited. From 1996
to 2003 he was with Cordis Cardiology, initially
as its president (Europe) and from 2000 to
2003 as its worldwide president. Prior to joining
Cordis, Donal worked for 12 years with Baxter
Healthcare, rising from plant manager in Ireland
to president of the Cardiovascular Group,
Europe, now Edwards Lifesciences.
Bachelor of Engineering, Master of Business
Administration
COMMITTEE RESPONSIBILITIES:
Chair Quality, Safety and Regulatory Committee,
Member People and Remuneration Committee.
Pip Greenwood
Non-executive director
TERM OF OFFICE:
Appointed June 2017, elected 24 August 2017.
Pip is a director of Spark New Zealand Limited,
Westpac New Zealand Limited, a current trustee
of the Auckland Writers Festival and served as
a member of the New Zealand Takeovers Panel
from 2007 to 2011. She will also join the Board of
a2 Milk Company Limited on 1 July 2019. Pip was
a partner at Russell McVeagh between 2001 and
2019 and has advised on many market-leading
transactions.
Bachelor of Laws
COMMITTEE RESPONSIBILITIES:
Chair People and Remuneration Committee.
Scott St John
Non-executive director
TERM OF OFFICE:
Appointed October 2015, last re-elected
23 August 2018.
Scott is Chancellor of the University of Auckland,
and a director of Mercury Limited, the NEXT
Foundation and Fonterra Cooperative Group
Limited. Scott was CEO of First NZ Capital
from 2002 to March 2017. He is a member
of Chartered Accountants Australia and
New Zealand and a fellow of the Institute of
Finance Professionals of New Zealand.
Bachelor of Commerce, Diploma in Business
COMMITTEE RESPONSIBILITIES:
Chair Audit & Risk Committee, Member People
and Remuneration Committee.
Our Board

32Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Lewis Gradon Lyndal YorkPaul ShearerAndrew Somervell
Winston Fong Brian SchultzDebra Lumsden
Jonti RhodesMarcus Driller
Nicholas Fourie
Our Executive Management Team

33Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
Our Executive Management Team
Lewis Gradon
Managing Director & Chief Executive
Officer
Lewis was appointed Managing Director & CEO
in April 2016. He previously served as Senior Vice
President – Products & Technology and General
Manager – Research and Development. During
his 35 year tenure with Fisher & Paykel, Lewis has
held various engineering positions overseeing the
development of our range of products as well as
the development of our manufacturing, quality,
intellectual property, supply chain and clinical
research functions. He received his Bachelor of
Science degree in physics from the University of
Auckland, New Zealand.
Winston Fong
Vice President – Surgical Technologies
Winston was appointed Vice President
– Surgical Technologies in 2017. Winston
previously served as Vice President – ICT from
2010 and held various IT management, systems
engineering and software development roles in
the business since 1999. Winston received his
Bachelor of Engineering degree with honours
in Electronics & Software Engineering from
Manukau Institute of Technology and Master of
Business Administration from the University of
Auckland, New Zealand.
Jonti Rhodes
General Manager – Supply Chain
Jonti was appointed General Manager – Supply
Chain in 2015. Jonti joined Fisher & Paykel
Healthcare in 2007 as a product design
engineer, and since that time has held roles,
both in New Zealand and the United States,
in quality, regulatory, and most recently as
Group Logistics Manager. Jonti has overseen
the implementation of the New Zealand and
US distribution hubs and played a key role in
the development of our product surveillance
system. He holds a Bachelor of Engineering
(Mechanical) from Auckland University
of Technology and a Master of Business
Administration from the University of Auckland.
Lyndal York
Chief Financial Officer
Lyndal was appointed CFO in March 2019.
Before joining Fisher & Paykel Healthcare,
Lyndal was CFO at Asaleo Care and prior to this
held Head of Group Finance and Group Financial
Controller roles at Cochlear in Australia over an
11-year period. She has also spent time in the
US, as VP Corporate Accounting and Reporting
at Edwards Lifesciences. Lyndal is a member
of Chartered Accounts Australia and New
Zealand, a graduate of the Australian Institute of
Company Directors, and received her Bachelor
of Economics from Macquarie University
and Masters in Business Administration from
Pepperdine University.
Brian Schultz
Vice President – Quality & Regulatory
Brian was appointed Vice President – Quality
& Regulatory Affairs in 2015. Brian previously
served as Quality Manager for New Zealand
Manufacturing since joining the company in
2011. Prior to joining Fisher & Paykel Healthcare,
Brian held quality management positions
within the medical device and pharmaceutical
industries in Australia, Switzerland, the United
Kingdom and the United States. He received his
Bachelor of Science degree from Grand Valley
State University, Michigan, United States.
Marcus Driller
Vice President – Corporate
Marcus was appointed Vice President –
Corporate in February 2019. Marcus joined Fisher
& Paykel Healthcare in 2009 as an in-house
lawyer and since that time has held roles in legal,
investor relations and corporate affairs and most
recently as General Manager – Corporate. Prior to
joining the company, he was with New Zealand
law firm, Russell McVeagh where he specialised
in corporate and commercial law. Marcus is
admitted as a Barrister and Solicitor of the High
Court of NZ, is a member of the Institute of
Financial Professionals NZ Inc and received his
Bachelor of Commerce and Bachelor of Laws
from the University of Auckland.
Paul Shearer
Senior Vice President – Sales & Marketing
Paul was appointed Senior Vice President
– Sales & Marketing in 2001. Paul previously
served as the General Manager – Sales and
Marketing of Fisher & Paykel’s healthcare
business from 1996. From 1990 to 1998, Paul
held various positions in the business and
established our sales operations in the UK
and US. He has held various positions with
Computercorp Ltd, a computer systems
integrator, and ICL Ltd., a multinational
computer systems company. Paul received his
Bachelor of Commerce degree in marketing
from the University of Canterbury, New Zealand.
Debra Lumsden
Vice President – Human Resources
Debra was appointed Vice President – Human
Resources in December 2016. Debra is from
the United Kingdom and has over 20 years’
experience working in HR across a variety of
industries and sectors. Before joining Fisher &
Paykel Healthcare, Debra was Vice President
HR at Gilbarco Veeder-Root in the UK, where
she headed up HR for Europe, the Middle East,
Africa, and the Asia Pacific regions. She has
also held senior roles with Insurance Australia
Group, E2V Technologies and BAE Systems.
She has a Bachelor of Science in Social Sciences
from Brunel University and a Master of Business
Administration from Warwick University, United
Kingdom.
Andrew Somervell
Vice President – Products & Technology
Andrew was appointed Vice President –
Products & Technology in April 2016. Since
joining Fisher & Paykel Healthcare in 2006,
he has held various product development
and operations management roles, and most
recently was General Manager — Product
Groups. He has overseen the development
of the OSA product range and managed
research and development, marketing, clinical,
manufacturing, and aspects of the supply chain.
Before joining Fisher & Paykel Healthcare,
Andrew was a Research Fellow at the University
of Auckland, New Zealand, and holds a
doctorate in physics from the same university.
Nicholas Fourie
Vice President – Information &
Communication Technology
Nicholas was appointed Vice President –
Information & Communication Technology in
February 2017. Nicholas has been with Fisher
& Paykel Healthcare since 2007, and in that
time has held various systems engineering
and IT management roles, including his most
recent position as ICT Manager – Development
& Engineering. Prior to joining Fisher & Paykel
Healthcare, he was with the South African
division of BHP Billiton. Nicholas holds a
Diploma in Computer Engineering from Damelin
School of Information Technology in South
Africa.

34Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019
Financials

INCOME STATEMENTS
Year ended 31 March
2018
NZ$M
2019
NZ$M
Variation
Reported
%
Variation
CC (1)
%
Operating revenue 980.81,070.4+9+8
Gross profit 650.4715.8+10+9
Gross margin 66.3%66.9%56 bps58 bps
Other income 5.0 5.0 +0+0
SG&A expenses (290.9) (327.8)+13+11
R&D expenses (94.7)(100.4)+6+6
Total operating expenses (385.6) (428.2)+11+9
Operating profit 269.8 292.6 +8+7
Operating margin 27.5%27.3%-17 bps-8 bps
Financing expenses (net) (2.0) (1.4)-30-145
Profit before tax 267.8291.2+9+9
Taxation(77.6) (82.0)+6+7
Profit after tax190.2209.2+10+9
1
Constant currency (CC) removes the impact of exchange rate movements. This approach is used to assess the Group’s
underlying comparative financial performance without any distortion from changes in foreign exchange rates. A full
reconciliation and basis of preparation is set out on page 36.
Total profit after tax for the year was up 10% to NZ$209.2 million (9% in constant currency).
Revenue
Operating revenue was NZ$1,070.4 million, which was 9% above last year or 8% in constant
currency. Hospital revenue grew 11% in constant currency driven by the growth in Optiflow nasal
high flow therapy. Homecare revenue grew 4% in constant currency. Strong growth in home
respiratory support and from our SleepStyle OSA CPAP system helped offset the hiatus in OSA
mask launches.
Gross margin
Our gross margin improved by 56 basis points to 66.9%, with a continued benefit from product
mix and our Mexico manufacturing facility. This is above our stated long term target of 65%.
Operating expenses
Operating expenses increased 11% (9% in constant currency) to $428.2 million driven by higher
patent litigation expenses. Excluding total patent litigation expenses of $23.4 million, operating
expense growth was 8% in constant currency, reflecting ongoing expenditure to support global
sales growth and the global ERP implementation.
R&D spend of $100.4 million grew 6%, lower than revenue growth following several years of it
growing above revenue. Over the long term we plan for R&D spend to grow in line with constant
currency revenue growth.
Financing expenses
Total reported financing expenses includes higher interest income on short term deposits and
capitalised borrowing costs associated with our property projects. Offsetting this was foreign
exchange losses on the translation of foreign currency debt.
Ta x
Our effective tax rate for the year was 28.2% down from 29% in the prior year. This decrease was
largely due to a benefit from foreign currency conversions and ongoing lower global tax rates.
Callaghan Grant and R&D Tax Credits
Included within other income is $5 million of income from the Callaghan Innovation growth
grant. This growth grant was recently extended through to 31 March 2021. In May 2019 the
New Zealand Government passed the Taxation (Research and Development Tax Credits) Act
which will be effective for us from 1 April 2019. This provides a 15% tax credit on eligible R&D
expenditure and replaces the Callaghan grant.
35Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
FINANCIAL COMMENTARY

CONSTANT CURRENCY INCOME STATEMENTS
Year ended 31 March
2017
NZ$M
2018
NZ$M
Variation
2017 to
2018
%
2019
NZ$M
Variation
2018 to
2019
%
Operating revenue 888.4 966.0 +9 1040.8 +8
Cost of sales (301.8) (327.7)+9 (347.0)+6
Gross profit 586.6 638.3 +9 693.8 +9
Gross margin 66.0%66.1% 5 bps 66.7% 58 bps
Other income 5.0 5.0 - 5.0 -
SG&A expenses (274.2) (291.0)+6 (321.7)+11
R&D expenses (86.0) (94.7)+10 (100.4)+6
Total operating expenses (360.2) (385.7)+7 (422.1)+9
Operating profit 231.4 257.6 +11 276.7 +7
Operating margin 26.0%26.7% 62 bps 26.6% -8 bps
Financing expenses (net) 3.1 2.0-35 (0.9) -145
Profit before tax 228.3 255.6 +12 277.6 +9
The significant exchange rates used in the constant currency analysis, being the budget
exchange rates for the year ended 31 March 2019, are USD 0.72, EUR 0.59, AUD 0.93, GBP 0.52,
CAD 0.94, JPY 77 and MXN 13.60.
CONSTANT CURRENCY ANALYSIS
A Constant Currency Income Statement is prepared each month to enable the Board
and management to monitor and assess the Group’s underlying comparative financial
performance without any distortion from changes in foreign exchange rates. Constant
Currency Income statements are presented in New Zealand dollars, restated at the budget
foreign exchange rates for the 2019 financial year. These income statements exclude
the impact of movements in foreign exchange rates, hedging results and balance sheet
translations.
This constant currency analysis is non–conforming financial information, as defined by
the NZ Financial Markets Authority, and has been provided to assist users of financial
information to better understand and assess the Group’s financial performance without the
impacts of spot foreign currency fluctuations and hedging results and has been prepared
on a consistent basis each year.
The Group’s constant currency income statement framework can be found on the
company’s website at www.fphcare.com/ccis.
RECONCILIATION OF CONSTANT CURRENCY TO ACTUAL INCOME STATEMENTS
Year ended 31 March
2017
NZ$M
2018
NZ$M
2019
NZ$M
Profit before tax (constant currency) 228.3255.6277.6
Spot exchange rate effect (9.3)(3.2)14.3
Foreign exchange hedging result 22.1 14.7(1.9)
Balance sheet revaluation (2.7) 0.71.2
Profit before tax (as reported) 238.4 267.8291.2
The reconciliation above illustrates that, when comparing the NZD profit before tax shown in the
actual income statement for the 2019 year with the corresponding prior year:
• the movement in average daily spot exchange rates had a favourable impact of $17.5 million;
and
• the result of foreign exchange hedging activities was lower by $16.6 million.
Overall, the net favourable effect of movements in exchange rates and the hedging programme
was $1.4 million, including the impact of balance sheet revaluations.
36Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
FINANCIAL COMMENTARY CONTINUED

FOREIGN CURRENCY IMPACTS
The Group is exposed to movements in foreign exchange rates, with operating revenue
generated in a wide range of currencies as shown below.
US dollars 50%
Euros 19%
Australian dollars 6%
Japanese yen 5%
British pounds 4%
Canadian dollars 3%
New Zealand dollars 1%
Other currencies 12%
The Group’s cost base continued to be more diverse with over 55% of cost of goods sold and
over 55% of operating expenses in currencies other than NZD.
The NZD weakened against all major currencies compared to the previous year. The USD
conversion rate remained similar to the prior comparable period, with a slight increase in EUR
average conversion exchange rate. While foreign exchange hedging contributed a loss of $1.9
million (2018: $14.7 million gain) to operating profit, new hedging in USD and EUR is expected to
realise benefits in future periods.
The average daily spot rate and the average conversion exchange rate (i.e. the accounting rate,
incorporating the benefit of forward exchange contracts in respect of the relevant financial year)
of the main foreign currency exposures for the reported periods are set out in the table below.
Average daily spot rateAverage conversion exchange rate
Year ended 31 March2018201920182019
USD0.7148 0.68110.6823 0.6804
EUR 0.6115 0.58830.5999 0.6039
The effect of balance sheet translations for the year resulted in an increase in operating revenue
of $2.4 million (2018: $1.8 million) and an increase in profit before tax of $1.2 million (2018: $0.7
million).
Foreign exchange hedging position
During the year, downwards volatility allowed opportunities to add cover for future years
although widening interest rate differentials favouring USD made longer dated NZD/USD
hedging more difficult. In particular, USD cover for 2020 to 2022 and EUR cover for 2021 to
2027. These hedges are expected to lead to currency benefits particularly in relation to EUR
hedges added. The hedging position for our main currency exposures as at 24 May 2019 is:
Year to 31 March202020212022202320242025–27
USD % cover of expected
exposure
85% 60% 15% 0% 0% 0%
USD average rate of cover 0.668 0.656 0.663 – – –
EUR % cover of expected
exposure
85% 60% 45% 35% 20% 5%
EUR average rate of cover 0.575 0.545 0.525 0.509 0.502 0.473
Hedging cover has been rounded to the nearest 5%.
BALANCE SHEET
2018
NZ$M
2019
NZ$M
Change
NZ$M
Trade receivables127.8136.08.2
Inventory125.4136.110.7
Less Trade and other payables
++
(69.4)(87.6)(18.2)
Working capital183.8184.50.7
Property, plant and equipment476.4601.4125.0
Intangible assets50.461.511.1
Other net assets 0.9 11.4 10.5
Net debt49.9 54.4 4.5
Net assets761.4913.2151.8
++
Trade and other payables exclude all non current payables and all employee entitlements and provisions
Our balance sheet remains strong with working capital well managed.
Trade receivables and inventories increased largely in line with our business growth. Our debtors
days were within the normal range being 46 days (2018: 45 days). Trade and other payables
includes an increase in capital building projects accruals.
The increase in property plant and equipment includes capital investment of $125 million of
which $83 million related to building additions, primarily our NZ and Mexico new building
projects. The increase included a $34 million revaluation of land in New Zealand and Mexico.
These increases were offset by $34 million of depreciation.
37Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
FINANCIAL COMMENTARY CONTINUED

Intangible assets increased by $11 million including patent acquisition costs and ERP
implementation costs. The global SAP rollout will continue over the next two to three years, with
the US office implementation expected in June 2019.
Other net asset increases include an increase in net derivative instrument assets, largely
reflecting continued favourable Euro currency positions.
Funding and Short-term Investments
2018
NZ$M
2019
NZ$M
Change
NZ$M
Loans and borrowings
– Current(13.7)–13.7
– Non Current(52.5)(69.0)(16.5)
Bank overdrafts(16.2)(17.3)(1.1)
Total interest-bearing liabilities(82.4)(86.3)(3.9)
Cash and cash equivalents31.948.216.3
Short-term investments 100.492.5(7.9)
Total cash and investments 132.3140.78.4
Net debt 49.9 54.4 4.5
Gearing-7.3%-6.7%0.6%
Undrawn debt facilities165.3164.1(1.2)
The average maturity of loans and borrowings of $69 million was 2.5 years and the currency
split was 85% USD; 4% Euros; 4% Australian dollars and 7% Canadian dollars (with no NZD
denominated debt). Interest-bearing debt increased by approximately $4.5 million including the
impact of currency revaluations, and our ongoing building programme in Mexico.
We hold cash balances and short-term investments, mainly in NZD, of $140.7 million at the end
of the period. This balance, and operating cash generated in 2020, will fund the payment of the
final dividend and ongoing payments for our new building in Auckland.
Gearing
1
At 31 March 2019 the group had net cash of $54.4 million and gearing of -6.7%. Gearing is below
the target range of -5% to +5% however is forecast to be within the target range by 31 March
2020 following the completion of the significant building programme in New Zealand and
Mexico.
CASH FLOWS
The full statement of cash flows is provided on page 42.
Year ended 31 March
2018
NZ$M
2019
NZ$M
Change
NZ$M
Operating profit before financing costs269.8292.622.8
Plus depreciation and amortisation44.641.7(2.9)
Change in working capital and other4.21.7(2.5)
Net interest paid(1.7)(1.1)0.6
Net income tax paid(69.1)(81.6)(12.5)
Operating cash flows247.8253.35.5
Purchase of land and buildings(41.4) (74.0) (32.6)
Purchase of plant and equipment(41.8) (41.4) 0.4
Purchase of intangible assets(15.5) (17.9) (2.4)
Free cash flows149.1 120.0 (29.1)
Dividends paid(102.5)(114.6)(12.1)
Operating cash flows
Cash flows from operations for the year increased 2% to $253.3 million. Excluding tax paid, cash
flows from operations increased by 6%. Tax paid is higher than the prior year largely due to
changes in the calculation and timing of New Zealand provisional tax payments providing a cash
flow benefit in the prior year.
Capital expenditure
Property, plant and equipment purchases for the period were $115 million, an increase from
$83 million in the prior year. The $115 million of purchases in 2019 primarily related to building
projects in New Zealand and Mexico, totaling $74 million with the remaining expenditure being
production tooling and equipment costs.
Dividends
Dividends paid of $115 million were 12% higher than the prior year. 10% of eligible shareholders
took up dividends in the form of fully paid ordinary shares under the dividend reinvestment
plan. This plan has been suspended for the final 2019 dividend payment.
1
Net interest-bearing debt (debt less cash and cash equivalents and short-term investments) to net interest-bearing debt and equity (less hedging reserves).
38Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
FINANCIAL COMMENTARY CONTINUED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2019
Notes
2018
NZ$M
2019
NZ$M
Profit after tax 190.2 209.2
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation reserve
Exchange differences on translation of foreign
operations
– 0.2
Hedging reserves
Changes in fair value in hedging reserves 22.7 29.3
Transfers to profit before tax (17.6) (10.0)
Tax on changes in fair value and transfers to
profit before tax
11 (1.4) (5.4)
Items that will not be reclassified to profit or loss
Revaluation of land 9 – 34.1
Other comprehensive income, net of tax 3.7 48.2
Total comprehensive income 193.9 257.4
CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2019
Notes
2018
NZ$M
2019
NZ$M
Operating revenue 4 980.8 1,070.4
Cost of sales (330.4) (354.6)
Gross profit 650.4 715.8
Other income 5 5.0 5.0
Selling, general and administrative expenses (290.9) (327.8)
Research and development expenses (94.7) (100.4)
Total operating expenses (385.6) (428.2)
Operating profit before financing costs 269.8 292.6
Financing income 1.6 3.3
Financing expense (3.7) (2.5)
Exchange gain (loss) on foreign currency
borrowings
0.1 (2.2)
Net financing expense (2.0) (1.4)
Profit before tax 5 267.8 291.2
Tax expense 11 (77.6) (82.0)
Profit after tax 190.2 209.2
Basic earnings per share 16 33.4 cps 36.5 cps
Diluted earnings per share 16 33.0 cps 36.2 cps
The accompanying Notes form an integral part of the Financial Statements.
39Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
FINANCIAL STATEMENTS

Notes
Share
capital
NZ$M
Treasury
shares
NZ$M
Retained
earnings
NZ$M
Reserves
NZ$M
Total
equity
NZ$M
Balance at 31 March 2017 183.5 (1.7) 391.0 88.8 661.6
Total comprehensive income – – 190.2 3.7 193.9
Dividends paid 17 – – (113.9) – (113.9)
Issue of share capital under dividend reinvestment plan15 11.4 – – – 11.4
Issue of share capital 15 0.5 – – – 0.5
Movement in share based payments reserve 17 – – – 3.2 3.2
Movement in treasury shares 15 – (1.3) – – (1.3)
Increase in share capital under share based payment schemes for employee services 15 6.0 – – – 6.0
Balance at 31 March 2018 201.4 (3.0) 467.3 95.7 761.4
Total comprehensive income – – 209.2 48.2 257.4
Dividends paid 17 – – (127.3) – (127.3)
Issue of share capital under dividend reinvestment plan15 12.7 – – – 12.7
Issue of share capital 15 0.4 – – – 0.4
Movement in share based payments reserve17 – – – 0.9 0.9
Movement in treasury shares 15 – 1.2 – – 1.2
Increase in share capital under share based payment schemes for employee services 15 6.5 – – – 6.5
Balance at 31 March 2019 221.0 (1.8) 549.2 144.8 913.2
The accompanying Notes form an integral part of the Financial Statements.
40Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2019

Notes
2018
NZ$M
2019
NZ$M
ASSETS
Current assets
Cash and cash equivalents 31.9 48.2
Short-term investments 100.4 92.5
Trade and other receivables 7 146.0 157.9
Inventories 8 125.4 136.1
Derivative financial instruments 6 18.8 19.2
Tax receivable 1.7 1.4
Total current assets 424.2 455.3
Non-current assets
Derivative financial instruments6 36.9 47.0
Other receivables2.5 2.6
Property, plant and equipment 9 476.4 601.4
Intangible assets 10 50.4 61.5
Deferred tax assets 11 34.7 38.9
Total assets 1,025.1 1,206.7
LIABILITIES
Current liabilities
Interest-bearing liabilities 12 29.9 17.3
Trade and other payables 13 112.8 135.0
Provisions 14 4.7 4.9
Tax payable 22.0 24.4
Derivative financial instruments 6 9.0 2.8
Total current liabilities 178.4 184.4
Non-current liabilities
Interest-bearing liabilities 12 52.5 69.0
Provisions14 2.1 2.2
Other payables 13 8.6 12.7
Derivative financial instruments 6 4.9 1.9
Deferred tax liabilities 11 17.2 23.3
Total liabilities 263.7 293.5
Notes
2018
NZ$M
2019
NZ$M
EQUITY
Share capital 15 201.4 221.0
Treasury shares 15 (3.0) (1.8)
Retained earnings 467.3 549.2
Reserves 17 95.7 144.8
Total equity 761.4 913.2
Total liabilities and equity 1,025.1 1,206.7
The accompanying Notes form an integral part of the Financial Statements.
On behalf of the Board
24 May 2019

Tony Carter Lewis Gradon
Chairman Managing Director and
Chief Executive Officer
41Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
CONSOLIDATED BALANCE SHEET
As at 31 March 2019

2018
NZ$M
2019
NZ$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 968.6 1,058.1
Grants received 5.0 4.8
Interest received 1.0 3.5
Payments to suppliers and employees (654.9) (726.9)
Tax paid (69.1) (81.6)
Interest paid (2.8) (4.6)
Net cash flows from operating activities 247.8 253.3
CASH FLOWS FROM INVESTING ACTIVITIES
Net short-term investments (100.0) 7.5
Sales of property, plant and equipment 0.2 0.1
Purchases of property, plant and equipment (83.2) (115.4)
Purchases of intangible assets (15.5) (17.9)
Net cash flows from investing activities (198.5) (125.7)
CASH FLOWS FROM FINANCING ACTIVITIES
Employee share purchase schemes 0.9 1.8
Issue of share capital 0.9 0.3
New borrowings 31.4 40.1
Repayment of borrowings (9.8) (40.7)
Dividends paid (102.5) (114.6)
Net cash flows from financing activities (79.1)(113.1)
Net (decrease) increase in cash (29.8) 14.5
Opening cash 45.6 15.8
Effect of foreign exchange rates –0.6
Closing cash 15.8 30.9
RECONCILIATION OF CLOSING CASH
Cash and cash equivalents 31.9 48.2
Bank overdrafts (16.1) (17.3)
Closing cash 15.8 30.9
2018
NZ$M
2019
NZ$M
CASH FLOW RECONCILIATION
Profit after tax 190.2 209.2
Add (deduct) non-cash items:
Depreciation and amortisation 44.6 41.7
Share based payments 4.9 5.5
Movement in provisions 1.6 0.3
Movement in deferred tax assets / liabilities 0.5 (3.3)
Foreign currency translation (0.8) 2.5
Other non-cash items (0.1) (1.3)
50.7 45.4
Net working capital movements:
Trade and other receivables (16.4) (11.8)
Inventories 9.6 (10.7)
Trade and other payables 6.6 17.4
Taxation 7.1 3.8
6.9 (1.3)
Net cash flows from operating activities 247.8 253.3
The accompanying Notes form an integral part of the Financial Statements.
42Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2019

CONTENTS OF THE NOTES
TO THE FINANCIAL STATEMENTS
1Reporting entity
2Basis of preparation and principles of consolidation
3Significant transactions and events in the financial
year
4Operating revenue and segmental information
5Operating profit
6Derivative financial instruments
7Trade and other receivables
8Inventories
9Property, plant and equipment
10Intangible assets
11Income tax
12Interest-bearing liabilities
13Trade and other payables
14Provisions
15Share capital
16Earnings per share
17Reserves
18Employee benefits
19Contingent liabilities
20Commitments
21Financial risk management
22Significant events after balance date
23Other accounting policies
Notes to the
Financial
Statements
43Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

1. REPORTING ENTITY
Fisher & Paykel Healthcare Corporation Limited (the “Company” or “Parent”) together with its
subsidiaries (the “Group”) is a leading designer, manufacturer and marketer of medical device
products and systems for use in both hospital and homecare settings. Products are sold in over
120 countries worldwide. The Company is a limited liability company incorporated and domiciled
in New Zealand. The address of its registered office is 15 Maurice Paykel Place, East Tamaki,
Auckland. These consolidated financial statements were approved for issue by the Board of
Directors on 24 May 2019.
2. BASIS OF PREPARATION AND PRINCIPLES OF CONSOLIDATION
Statement of compliance and measurement base
The Company is registered under the Companies Act 1993 and is an FMC reporting entity
under Part 7 of the Financial Markets Conduct Act 2013. The Company is also listed on the
New Zealand Stock Exchange (NZX) and the Australian Stock Exchange (ASX). The consolidated
financial statements have been prepared in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013.
These consolidated financial statements for the year ended 31 March 2019 have been prepared
in accordance with New Zealand Generally Accepted Accounting Principles (NZ GAAP). They
comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS),
other New Zealand accounting standards and authoritative notices that are applicable to entities
that apply NZ IFRS. The consolidated financial statements also comply with International
Financial Reporting Standards (IFRS). The Group is a for-profit entity for the purposes of
complying with NZ GAAP.
These consolidated financial statements are presented in New Zealand dollars (NZD) to the
nearest million (to one decimal place) unless otherwise stated.
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries
of the Group as at balance date and the results of all subsidiaries for the year then ended. All
subsidiaries are 100% owned within the Group.
Intercompany transactions, balances and unrealised gains on transactions between subsidiary
companies are eliminated. Unrealised losses are also eliminated unless the transaction provides
evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the Group.
Significant accounting policies
Accounting policies are disclosed in each of the applicable notes to the financial statements and
are designated with an symbol.
Historical cost convention
These consolidated financial statements have been prepared under the historical cost
convention, as modified by the revaluation of financial assets and liabilities (including derivative
instruments) at fair value through profit or loss and/or other comprehensive income, and the
revaluation of land.
Foreign currency
Functional and presentation currency
The consolidated financial statements are presented in NZD, which is the Group’s presentation
currency. Items included in the financial statements of each of the subsidiaries are measured
using the currency of the primary economic environment in which the entity operates (“the
functional currency”).
The Group operates as one integrated business, and the functional currency of all material
global operations is New Zealand dollars, with the exception of the Fisher & Paykel Healthcare
Mexico Properties S.A. de C.V (“Mexico Properties”) which was established for the purpose
of holding the Group’s property in Mexico. Upon completion of the Mexico Properties capital
project it was determined that the functional currency is United States dollars (USD). The results
and financial position of entities that have a different functional currency are translated to NZD
as follows: assets and liabilities are translated at the exchange rate at balance date and Income
Statement items are translated at the average exchange rates for the year. Exchange differences
are recognised in other comprehensive income as a currency translation reserve movement.
Transactions and balances
Foreign currency transactions are translated into the relevant functional currency at the
exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at period end exchange
rates of monetary assets and liabilities denominated in foreign currencies are recognised in the
Income Statement, except when deferred in other comprehensive income as qualifying cash
flow hedges and qualifying net investment hedges.
Critical accounting estimates and judgements
The preparation of financial statements in conformity with NZ IFRS requires the use of
certain critical accounting estimates. It also requires management to exercise its judgement
in the process of applying the Group’s accounting policies. The Directors regularly review all
accounting policies and areas of judgement in presenting the financial statements. Significant
estimates are disclosed in each of the applicable notes to the financial statements and are
designated with an symbol.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
44Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

3. SIGNIFICANT TRANSACTIONS AND EVENTS IN THE FINANCIAL YEAR
The following significant transactions and events affected the financial performance and
financial position of the Group for the year ended 31 March 2019:
Global patent infringement litigation settlement
In February 2019, Fisher & Paykel Healthcare reached an agreement with ResMed to settle all
outstanding patent infringement disputes between the companies in all venues around the
world.
Under the agreement, all ongoing infringement proceedings against named products were
dismissed. The settlement involved no payment by either party.  During the year, the Group
incurred net intellectual property litigation expenses of $23.4 million (2018: $15.6 million).
Further details are included in Note 19.
Capital expenditure
During the year, the building of the Group’s new production facility in Tijuana, Mexico was
completed. Production at the facility is expected to begin in FY20.  To date, spending on
the land and building project totals $58.1 million (2018: $10.3 million), excluding furniture
and fittings.
During the year, construction work has progressed for a fourth building on our Auckland,
New Zealand campus. Capital commitments at 31 March 2019 include $69.9 million related to
this project (2018: $126.4 million). To date, spending on this project totals $69.2 million (2018:
$10.3 million). The building is expected to be operational in 2020.
4. OPERATING REVENUE AND SEGMENTAL INFORMATION
2018
NZ$M
2019
NZ$M
Sales revenue 964.5 1,072.1
Foreign exchange gain (loss) on hedged sales 16.3 (1.7)
Total operating revenue 980.8 1,070.4
Revenue by Product Group
Hospital products 572.1 642.3
Homecare products 398.1 421.4
970.2 1,063.7
Distributed and other products 10.6 6.7
Total operating revenue 980.8 1,070.4
Revenue after hedging by geographical location of customer:
North America 458.5 501.5
Europe 297.6 314.6
Asia Pacific 181.0 208.1
Other 43.7 46.2
Total operating revenue 980.8 1,070.4

Revenue is recognised at the point in time performance obligations are satisfied by
transferring control of goods to the customer at the transaction price specified in the
contract. Control typically transfers to the customer at the same time as the legal title
passes to the customer, typically on delivery. The transaction price includes all amounts
which the Group expects to be entitled to net of sales taxes and other indirect taxes,
expected rebates and discounts. Where applicable, rebates and/or discounts are included
within the consideration using an estimation typically based on the most likely method,
and are only recognised to the extent that it is highly probable that a significant reversal
will not occur.
There are no significant financing components in the Group’s revenue arrangements.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
45Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

4. OPERATING REVENUE AND SEGMENTAL INFORMATION (CONTINUED)
Segment reporting
The Group operates predominantly in one segment - being the design, manufacture, marketing
and sale of medical devices and systems globally. These products and systems are for use in
respiratory care, acute care, surgery and the treatment of OSA in the home and within the
hospital. Resource allocation decisions are made to optimise the consolidated Group’s financial
operating profit.
During the year management has reassessed the determination of operating segments. This
determination is made to be consistent with the internal reporting provided to the chief
operating decision-maker (CODM), being a group comprising the Board of Directors (which
includes the Chief Executive Officer), Vice-President – Products and Technology, Senior Vice-
President - Sales and Marketing and the Chief Financial Officer.
Revenue is disclosed by the following regions:
North America – United States of America and Canada.
Europe – United Kingdom, France, Germany, Sweden, Turkey, Russia and neighbouring European
countries.
Asia-Pacific – Australia, Japan, India, China, South Korea, Taiwan and Hong Kong.
Other – New Zealand, Latin America, Africa, the Middle East and other countries not included in
the above list.
Non current asset disclosures by geographical location are included in Note 9.
5. OPERATING PROFIT
2018
NZ$M
2019
NZ$M
Profit before tax is after charging the following specific expenses:
Auditors’ fees:
Statutory audit and half year review (a)1.0 0.9
Other assurance and audit related services (b) 0.1 0.1
Total audit, other assurance services and audit related services 1.1 1.0
Other services (c) 0.1 0.1
Total fees paid to auditors 1.2 1.1
Donations0.2 0.1
Inventory written off (net) 6.3 3.5
Rental and lease expense 11.2 13.0
Intellectual property litigation expense (net – refer Note 19) 15.6 23.4
Other fees paid to auditors
(a) Statutory audit and half year review includes $306,000 (2018: 291,000) paid to PwC
Network firms in the United Kingdom, France Germany, Sweden, Hong Kong, China and Mexico.
(b) Other assurance and audit related services of $50,100 (2018: $60,000) include assurance
procedures in relation to compliance with the constant currency framework and assessment of
eligible expenditure for the purposes of the research and development grant and scrutineering
the counting of votes at the Annual Shareholders’ Meeting (ASM).
(c) Other services in 2019 include treasury risk management advice, remuneration benchmarking
as well as tax compliance. In 2018, other services included these items as well as accounting
standards advice and risk management advice.
Profit before tax is after crediting the following specific income:
Research and development growth grant 5.0 5.0

Government Grants are recognised in the Income Statement over the same period that the
related costs are expensed. Government Grants are recognised when there is reasonable
assurance the Group will comply with the conditions attaching to the grants.
Research and development growth grant
The Callaghan Growth Grant provides reimbursement for eligible research and development
‘R&D’ expenditure up to a maximum of $5.0 million per annum (excluding GST). The initial three
year term of the Callaghan Growth Grant concluded on 30 September 2016 and was extended
to 30 September 2018. The Group has been granted a further extension to 31 March 2021.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
46Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019

6. DERIVATIVE FINANCIAL INSTRUMENTS
20182019
Assets
NZ$M
Liabilities
NZ$M
Assets
NZ$M
Liabilities
NZ$M
CURRENT
Foreign currency forward exchange contracts – cash flow hedges 14.4 8.6 14.7 2.6
Foreign currency forward exchange contracts – not hedge accounted 0.2 –
Foreign currency option contracts – cash flow hedges 4.0 0.2 3.8 –
Foreign currency option contracts – time value 0.1 0.1 0.3 –
Interest rate swaps – cash flow hedges 0.1 0.1 0.1 0.2
Interest rate options – cash flow hedges 0.2 – 0.1 –
18.8 9.0 19.2 2.8
NON-CURRENT
Foreign currency forward exchange contracts – cash flow hedges 27.0 4.7 43.0 1.6
Foreign currency option contracts – cash flow hedges 8.4 – 3.1 –
Foreign currency option contracts – time value 0.6 – 0.5 –
Interest rate swaps – cash flow hedges 0.6 0.2 0.3 0.3
Interest rate options – cash flow hedges 0.3 – 0.1 –
36.9 4.9 47.0 1.9

Derivatives are initially recognised at fair value on the date a derivative contract is entered
into, and are subsequently re-measured to their fair value. The method of recognising
the resulting gain or loss depends on whether the derivative is designated as a hedging
instrument and, if so, the nature of the item being hedged. The Group generally applies hedge
accounting to all derivative financial instruments.
The Group designates certain derivatives as either (1) hedges of the fair value of recognised
assets or liabilities or a firm commitment (fair value hedges) or (2) hedges of highly probable
forecast transactions (cash flow hedges). At the inception of the transaction the Group
documents the relationship between hedging instruments and hedged items, as well as the
risk management objective and strategy for undertaking various hedge transactions.
The Group also documents their assessment, both at hedge inception and on an ongoing
basis, of whether the derivatives that are used in hedging transactions have been and will
continue to be highly effective in offsetting changes in fair values or cash flows of hedged
items. Any ineffective portion is recognised immediately in the Income Statement. Derivatives
that are designated as hedges will be classified as non-current if they have maturities greater
than 12 months after the balance sheet date.
Some components of hedge accounted derivatives are excluded from the designated
risk. Cash flow hedges include only the intrinsic value of options. Time value on options is
excluded from the hedge designation and is marked to market through Other Comprehensive
Income and accumulated within a separate component of equity (‘the Costs of Hedging
Reserve’ within ‘Hedging Reserves’) until such time as the related hedge accounted cash
flows affect profit or loss. At this stage the cumulative amount is reclassified to profit or loss.
Master netting arrangements
The Group enters into derivative transactions under the International Swaps and Derivatives Associate (ISDA) master agreements. The ISDA agreements do not meet the criteria for offsetting
derivatives in the balance sheet. Netting arrangements are only enforceable upon early termination, for example, on occurrence of a credit default.
Refer to Note 21 for information on the calculation of fair values and maturity of undiscounted cash flows for these financial instruments.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
47Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

6. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Contractual amounts of derivative financial instruments were as follows:
2018
NZ$M
2019
NZ$M
Foreign currency forward contracts and options
Sale commitments forward exchange contracts 879.3 982.1
Purchase commitments forward exchange contracts 60.7 63.1
Foreign currency borrowing forward exchange contracts 8.5 23.5
NZD call option contracts purchased – 7.7
Collar option contracts – NZD call options purchased (i) 113.7 86.3
Collar option contracts – NZD put options sold (i) 125.5 94.6
Interest rate derivatives
Interest rate swaps 42.1 50.2
Interest rate options 20.7 22.0
(i) Foreign currency contractual amounts of put and call options are equal.
Undiscounted foreign currency contractual amounts for outstanding hedges were as follows:
Foreign Currency
2018
M
2019
M
Sale commitments
United States dollars US$294.5US$302.8
European Union euros €210.7€241.5
Australian dollars A$19.6A$16.5
British pounds £21.5£19.4
Canadian dollars C$21.0C$26.6
Japanese yen ¥3,670.0¥4,925.0
Chinese yuan ¥82.5¥88.0
Korean won ₩8,553.7₩7719.1
Swedish kronor kr38.3kr23.3
Danish krone kr4.5kr3.5
Purchase commitments
Mexican pesos MXN$855.5MXN$941.0
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
48Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

7. TRADE AND OTHER RECEIVABLES
2018
NZ$M
2019
NZ$M
CURRENT
Trade receivables 128.3 136.4
Loss allowance for doubtful trade receivables (0.5) (0.4)
127.8 136.0
Other receivables 18.2 21.9
146.0 157.9

Trade receivables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method, less loss allowance for doubtful
trade receivables. Bad debts are written off when they are considered to have become
uncollectable.
Trade receivables credit risk
As at balance date 84% of trade receivables were current (2018: 86%) with less than 1% (2018:
1%) more than 90 days past due. The total loss allowance for doubtful trade receivables covers
the majority of these more than 90 days past due balances.
Customer and receivable concentration
2018 2019
Five largest customers’ proportion of the Group’s:
Operating revenue 17.5%18.0%
Trade receivables 12.9%16.6%
There is no history of default in relation to these customers. Further information about the credit
quality and the Group’s exposure to credit risk can be found in Note 21.
8. INVENTORIES
2018
NZ$M
2019
NZ$M
Materials 32.6 38.8
Finished products 103.1 107.0
Provision for obsolete inventories (10.3) (9.7)
125.4 136.1

Inventories are stated at the lower of cost or net realisable value. Cost is determined using
the first-in, first-out (FIFO) method and includes expenditure incurred in acquiring the
inventories and bringing them to their existing location and condition. The cost of finished
goods comprises raw materials, direct labour, other direct costs and related production
overheads (based on normal operating capacity). Net realisable value is the estimated
selling price in the ordinary course of business, less applicable variable selling expenses.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
49Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019

9. PROPERTY, PLANT AND EQUIPMENT
Reconciliation of carrying amounts at the beginning and end of the year
LandBuildings
Plant &
equipmentCapital projectsTotal
Fair ValueStructure
Fit out
and otherBuildingsOther
NZ$M NZ$M NZ$M NZ$M NZ$M NZ$M NZ$M
Cost and revaluation
Balance at 31 March 2017 117.0 89.5 128.7 280.5 3.3 50.2 669.2
Additions 19.9 – 1.1 8.4 20.5 36.2 86.1
Transfers 1.2 – 1.9 30.8 (1.0) (32.9) –
Disposals – – – (36.0) – – (36.0)
Foreign exchange differences 0.1 – – – – – 0.1
Balance at 31 March 2018 138.2 89.5 131.7 283.7 22.8 53.5 719.4
Revaluation recognised in asset
revaluation reserve
34.1 – – – – – 34.1
Additions – 0.3 1.1 13.9 82.9 26.9 125.1
Transfers 7.4 27.1 8.6 25.6 (43.1) (25.6) –
Disposals – – – (4.4) – – (4.4)
Foreign exchange differences 0.3 – – – – – 0.3
Balance at 31 March 2019 180.0 116.9 141.4 318.8 62.6 54.8 874.5
Depreciation and impairment losses
Balance at 31 March 2017 – 16.3 58.3 169.4 – – 244.0
Depreciation charge for the year – 1.8 6.5 26.7 – – 35.0
Disposals – – – (36.0) – – (36.0)
Balance at 31 March 2018 – 18.1 64.8 160.1 – – 243.0
Depreciation charge for the year – 2.0 5.7 26.6 – – 34.3
Disposals – – – (4.2) – – (4.2)
Balance at 31 March 2019 – 20.1 70.5 182.5 – – 273.1
Carrying amounts
At 31 March 2017 117.0 73.2 70.4 111.1 3.3 50.2 425.2
At 31 March 2018 138.2 71.4 66.9 123.6 22.8 53.5 476.4
At 31 March 2019 180.0 96.8 70.9 136.3 62.6 54.8 601.4
Buildings additions in New Zealand and Mexico include capitalised finance costs of $2.2 million (2018: $0.7 million).
The average effective interest rate used is between 2.8% and 5.4% (2018: 3% and 4.4%).

Land is measured at fair value, based on periodic
but at least triennial valuations by external
independent valuers less any impairment losses
recognised after the date of the revaluation.
Valuations are performed with sufficient regularity
to ensure that the fair value does not differ
materially from its carrying amount.
All other property, plant and equipment is stated
at historical cost less depreciation and impairment.
Historical cost includes expenditure that is directly
attributable to the acquisition of the items. This
cost includes labour attributable to bringing the
assets to the location and working condition for its
intended use.
Depreciation is generally calculated using the
straight line method and is expensed over the
estimated useful lives. Depreciation methods,
residual values and useful lives are reassessed at
each reporting date. Estimated useful lives are as
follows:
Buildings – structure 25 – 50 years
Buildings – fit-out and other 3 – 50 years
Plant and equipment 3 – 15 years
An asset’s carrying amount is written down
immediately to its estimated recoverable amount
if the asset’s carrying amount is greater than its
estimated recoverable amount.
Revaluations of land
Any revaluation increment is credited to the asset
revaluation reserve included in equity, except to
the extent that it reverses a revaluation decrement
for the same asset previously recognised in the
Income Statement, in which case the increment is
recognised in the Income Statement.
Any revaluation decrement is recognised in the
Income Statement, except to the extent that
it offsets a previous revaluation increment for
the same asset, in which case the decrement is
debited directly to the asset revaluation reserve
to the extent of the credit balance existing in the
revaluation reserve for that asset. Upon disposal
or derecognition, any revaluation reserve relating
to the particular asset being sold is transferred to
retained earnings.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
50Fisher & Paykel Healthcare Corporation LimitedAnnual Report 2019

9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Land revaluation
As described in Note 21 land in Mexico and New Zealand is considered to be a level 3 asset
within the fair value hierarchy for valuation purposes. There are certain estimates associated
with determining fair value, with the significant input being comparable land sales information
per square metre (‘psm’) for similar properties adjusted to reflect relevant physical and
locational characteristics. Valuation of land is performed in accordance with the provisions of
NZ IAS 16 Property, Plant and Equipment and NZ IFRS 13 Fair Value Measurement.
New Zealand
The New Zealand land holding was valued by Jones Lang LaSalle (JLL NZ), with an effective
date of 31 March 2019 in accordance with the Australia and New Zealand Property Institute
Valuation Standards. The valuation of land ranged from $400 psm for land with improvements
and $350 psm for development land.
Mexico
The Group has approximately 15 hectares of land in Tijuana. An independent valuation of
the Mexico land was conducted by Jones Lang LaSalle (JLL Mexico) as at 31 March 2019
in accordance with the International Valuation Standards. The land has been valued at
US$15.7 million (NZ$23.0 million) representing US$100 psm (NZ$143 psm).
Carrying amounts of land if measured at historical cost
New ZealandMexico
2018
NZ$M
2019
NZ$M
2018
NZ$M
2019
NZ$M
At historical cost 63.5 70.9 21.2 21.2
At Fair Value 117.0 157.0 21.2 23.0
Property, plant and equipment and intangible assets by geographical location:
2018
NZ$M
2019
NZ$M
New Zealand 438.3 542.1
Mexico 76.9 108.7
North America 6.9 7.3
Europe 2.4 2.5
Asia Pacific 2.2 2.2
Other 0.1 0.1
526.8 662.9
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
51Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

10. INTANGIBLE ASSETS
Software
Patents,
trademarks &
applicationsOther
ERP project in
progressTotal
NZ$M NZ$M NZ$M NZ$M NZ$M
Cost
Balance at 31 March 2017 44.4 34.0 5.0 0.3 83.7
Additions 4.4 8.0 – 3.2 15.6
Transfers 0.3 – – (0.3) –
Disposals (0.9) – – – (0.9)
Balance at 31 March 2018 48.2 42.0 5.0 3.2 98.4
Additions 3.5 10.6 – 4.5 18.6
Transfers 2.7 – – (2.7) –
Disposals (0.1) (1.4) – – (1.5)
Balance at 31 March 2019 54.3 51.2 5.0 5.0 115.5
Amortisation and impairment losses
Balance at 31 March 2017 16.7 18.9 3.6 – 39.2
Amortisation for the year 3.6 6.0 – – 9.6
Disposals (0.8) – – – (0.8)
Balance at 31 March 2018 19.5 24.9 3.6 – 48.0
Amortisation for the year 3.9 3.5 – – 7.4
Disposals – (1.4) – – (1.4)
Balance at 31 March 2019 23.4 27.0 3.6 – 54.0
Carrying amounts
At 31 March 2017 27.7 15.1 1.4 0.3 44.5
At 31 March 2018 28.7 17.1 1.4 3.2 50.4
At 31 March 2019 30.9 24.2 1.4 5.0 61.5

Software: Acquired computer software licences are initially
capitalised at cost, which includes the purchase price and other
directly attributable cost of preparing the asset for its intended
use including employee costs. Direct expenditure, which
enhances or extends the performance of computer software
beyond its specifications and which can be reliably measured,
is added to the original cost of the software. Software costs are
amortised over the useful economic life of 3 to 15 years.
The ERP implementation project costs are transferred from ERP
project in progress to Software, as each stage is completed.
Patents and trademarks: Patents and trademarks have a finite
useful life and are carried at cost less accumulated amortisation
and impairment losses. Amortisation is calculated using
the straight line method to allocate the cost of patents and
trademarks over their anticipated useful lives of 5 to 15 years.
In the event of a patent being superseded or a trademark
registration is not continued or renewed, the unamortised costs
are expensed immediately.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
52Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

11. INCOME TAX
INCOME TAX EXPENSE
2018
NZ$M
2019
NZ$M
Profit before tax 267.8 291.2
Tax expense at the New Zealand rate of 28% 75.0 81.5
Adjustments to tax:
Non-assessable income (0.4) (0.3)
Non-deductible expenses 1.7 2.4
Foreign rates other than 28% 1.1 (0.2)
Effect of foreign currency translations (0.1) (0.8)
Prior period over provision 0.3 (0.6)
Tax expense 77.6 82.0
This is represented by:
Current tax 77.1 85.2
Deferred tax 0.5 (3.2)
Tax expense 77.6 82.0
Effective tax rate 29.0%28.2%

Tax expense comprises current and deferred tax. Tax expense is recognised in the Income
Statement except to the extent that it relates to items recognised outside of the Income
Statement, in which case it is recognised in Other Comprehensive Income or directly in Equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted at the balance date. It also includes any adjustment to tax
payable in respect of previous financial years.
Deferred tax arises due to temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and those for tax purposes.
Deferred tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by balance date and are expected to apply when the related deferred
tax asset is realised or the deferred tax liability is settled.
IMPUTATION CREDITS
2018
M
2019
M
New Zealand imputation credits available for use in subsequent
reporting periods
NZ$92.5 NZ$118.8
Australian franking credits available for use in subsequent
reporting periods
A$8.3 A$9.1
DEFERRED TAX
Provisions and
accruals
Property,
plant and
equipment and
intangibles
Financial
instrumentsOtherTotal
NZ$MNZ$MNZ$MNZ$MNZ$M
Balance at 31 March 2017 42.3 (16.9) (8.9) 1.0 17.5
Amounts recognised in:
Other comprehensive income – – (1.4) – (1.4)
Directly in equity – – – 1.9 1.9
In the Income Statement 2.4 (2.5) (0.6) 0.2 (0.5)
Balance at 31 March 2018 44.7 (19.4) (10.9) 3.1 17.5
Amounts recognised in:
Other comprehensive income – – (5.4) – (5.4)
Directly in equity – – – 0.3 0.3
In the Income Statement 6.1 (3.6) (0.3) 1.0 3.2
Balance at 31 March 2019 50.8 (23.0) (16.6) 4.4 15.6
Deferred tax assets and liabilities are offset within the Balance Sheet where they relate to income taxes levied by the same taxation authority.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
53Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

12. INTEREST-BEARING LIABILITIES
2018
NZ$M
2019
NZ$M
CURRENT
Bank overdrafts 16.1 17.3
Borrowings 13.8 –
29.9 17.3
NON-CURRENT
Borrowings expiring
Between one and two years – 44.1
Between two and three years 52.5 –
Between three and four years – –
Between four and five years – 24.9
52.5 69.0

Borrowings are recognised initially at fair value, net of transaction costs incurred.
Subsequent to initial recognition, borrowings are measured at amortised cost, applying the
effective interest rate method. Financing expenses directly attributable to the acquisition,
construction or production of a qualifying asset are capitalised as part of the cost of that
asset.
Borrowings are classified as current liabilities unless the Group has an unconditional right
to defer settlement of the liability for at least 12 months after the reporting date.
Borrowing Facilities
Borrowings have been aged in accordance with the expiry dates of the facilities as there are no
required principal payments before the expiry of each facility. At year end the weighted average
interest rate is 2.7% (2018: 2.4%).
Key lenders to the Group are Debt Certificate Holders under the Negative Pledge Deed. In
April 2017, an amended Negative Pledge Deed was executed. The negative pledge includes the
covenant that security can be given only in limited circumstances.
The companies in the Group providing the undertakings under the amended Negative Pledge
Deed are:
Fisher & Paykel Healthcare Corporation Limited
Fisher & Paykel Healthcare Limited
Fisher & Paykel Healthcare Treasury Limited
Fisher & Paykel Healthcare Properties Limited
The principal covenants of the negative pledge are that:
(a) the interest cover ratio for the Group shall not be less than 3 times earnings before
interest, tax, depreciation and amortisation (EBITDA);
(b) the net tangible assets of the Group shall not be less than $200 million; and
(c) the total tangible assets of the Guaranteeing Group shall constitute at least 80% of the
total tangible assets of the Group.
Refer to Note 21 (d) for further information on these covenants.
2018
NZ$M
2019
NZ$M
Unused lines of credit
Bank overdraft facilities 26.8 31.2
Borrowing facilities 138.5 145.0
165.3 176.2
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
54Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

13. TRADE AND OTHER PAYABLES
2018
NZ$M
2019
NZ$M
CURRENT
Trade payables 32.7 55.1
Employee entitlements 43.4 47.4
Other payables and accruals 36.7 32.5
112.8 135.0
NON-CURRENT
Employee entitlements 8.0 11.2
Other payables and accruals 0.6 1.5
8.6 12.7

Trade and other payables represent liabilities for goods and services provided to the Group
prior to the end of the financial period which are unpaid. The amounts are unsecured and
are usually paid within 60 days of recognition. Trade payables are recognised initially at fair
value and subsequently measured at amortised cost using the effective interest method.
Refer to Note 18 for further details of employee entitlements and benefits.
14. PROVISIONS
2018
NZ$M
2019
NZ$M
Warranty provision
CURRENT
Balance at beginning of the year 3.2 4.7
Current year provision 8.6 7.6
Warranty expenses incurred (7.1) (7.4)
Balance at end of the year 4.7 4.9
NON-CURRENT
Balance at beginning of the year 2.0 2.1
Current year provision 0.1 0.1
Warranty expenses incurred - -
Balance at end of the year 2.1 2.2

Provisions are recognised where the Group has a present legal or constructive obligation
as a result of past events and it is more likely than not that an outflow of resources will be
required to settle the obligation, and the amount can be reliably estimated.
Warranty
Provision for warranty covers the obligations for the unexpired warranty periods for
products, based on recent historical costs incurred on warranty exposure. Currently typical
warranty terms are 1 to 2 years for parts or parts and labour.
As the provision for warranty is based on historical warranty rates, the actual future
warranty claims experienced by the Group may be different to that of the past. Factors
that could impact the provision for warranty include the success of the Group’s quality
system, as well as future parts and labour costs. Where the Group is aware of specific
product warranty issues these are included in the provision.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
55Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019

15. SHARE CAPITAL
2018
NZ$M
2019
NZ$M
Share capital at beginning of the year 183.5 201.4
Issue of share capital under dividend reinvestment plan (i) 11.4 12.7
Issue of share capital 0.5 0.4
Increase in share capital under share based payment schemes
for employee services
6.0 6.5
Share capital at end of the year 201.4 221.0
Less treasury shares (ii) (3.0) (1.8)
198.4 219.2
Number of issued shares
Number of shares on issue at beginning of the year 567,686,436 571,230,264
Shares issued:
Dividend reinvestment plan (i) 946,443 918,827
Employee share purchase schemes 182,982 90,510
Exercise of share options 138,619 77,980
Exercise of share options under cancellation facility 1,727,514 954,488
Exercise of performance share rights 548,270 436,670
Number of shares on issue at end of the year 571,230,264 573,708,739
Less treasury shares (ii) (425,725) (210,457)
570,804,539 573,498,282

Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction. Where any Group company purchases the Company’s equity
share capital (treasury shares), the consideration paid, including any directly attributable
incremental costs (net of income taxes), is deducted from equity attributable to the
Company’s equity holders until the shares are cancelled or reissued.
Where such shares are subsequently reissued, any consideration received (net of any
directly attributable incremental transaction costs and the related income tax effects) is
included in equity attributable to the Company’s equity holders.
All shares are fully paid. All ordinary shares rank equally with one vote attached to each fully
paid ordinary share.
(i) Shares were issued under the Company’s dividend reinvestment plan at an average price of
$13.87 (2018: $12.05) per share.
(ii) The treasury shares are those shares held and controlled by Fisher & Paykel Healthcare
Employee Share Purchase Trustee Limited.
16. EARNINGS PER SHARE
2018
NZ$M
2019
NZ$M
Profit after tax 190.2 209.2
Weighted average number of ordinary shares 570,023,436 572,780,545
Adjustment for share options, PSRs and ESRs 6,426,201 5,270,055
Weighted average number of ordinary shares
for diluted earnings per share576,449,637 578,050,600
Basic earnings per share (cents per share) 33.4 cps 36.5 cps
Diluted earnings per share (cents per share) 33.0 cps 36.2 cps

Basic earnings per share is calculated by dividing the profit after tax of the Group by the
weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated by adjusting the weighted average number
of ordinary shares outstanding to assume conversion of all dilutive potential ordinary
shares. Options, Performance Share Rights (PSRs) and Employee Share Rights (ESRs) are
convertible into the Company’s shares, and are therefore considered dilutive securities for
diluted earnings per share.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2019
56Fisher & Paykel Healthcare Corporation Limited
Annual Report 2019